Tracking Sustainable Transport in Vietnam: Data and Policy Review for Energy Efficiency and Climate Change 2015

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

This report is prepared in cooperation with the Department of Environment, Ministry of Transport of Vietnam.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Acknowledgements The author team and Transport and Climate Change project (TCC) project would like to express

sincere appreciation to those who have contributed invaluable support and inputs to the this report: Dr. Rudolf Petersen, International Transport Expert, Mr. Sudhir Gota, Dr. Bang Quoc Ho, Head of Air Pollution and Climate Change Department, Institute of Environment &

Resources, Vietnam National University, Ho Chi Minh City (VNU-HCM), Mr. Tran Anh

Duong, Director General, Environmental Department, Ministry of Transport, Mrs. Nguyen Thi Phuong Hien, Deputy Director General, Transport Development and Strategy Institute, Ministry of Transport and Mr. Nguyen Duc Cuong, Director of the Center for Renewable Energy under the Vietnam Institute of Energy, as well as representatives of international organisations interviewed.

The Project Context The GIZ Programme on Cities, Environment and Transport (CET) in ASEAN seeks to reduce emissions from transport and industry by providing co-benefits for local and global environmental protection. The CET Project ‘Energy Efficiency and Climate Change Mitigation in the Land Transport Sector in the ASEAN region’ (Transport and Climate Change (TCC) www.TransportandClimateChange.org) aims in turn to develop strategies and action plans for more sustainable transport.

As presented to the ASEAN Land Transport Working group, TCC’s regional activities are in the area of fuel efficiency, strategy development, green freight, and Nationally Appropriate Mitigation Actions in the transport sector. At the national level the project supports relevant transport and environment government bodies in the Philippines, Thailand, Vietnam, Malaysia and Indonesia, for the development of national action plans and improvement of policy monitoring systems. The project is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ).

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Kathleen Dematera Contreras Authors:

Alvin Mejia Phan Quynh Nhu

Mark Tacderas Kaye Patdu

Loϊc Daudey

Nguyen Anh Tuan

Stefan Bakker

Rudolf Petersen Reviewers: Le Thi My Hanh Tran Anh Duong Bang Quoc Ho Papondhanai Nanthachatchavankul

Contact: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices Bonn and Eschborn, Germany

Lake Rajada Office Complex (16th floor) New Ratchadapisek Road, Klongtoey 10110 Bangkok Thailand

www.TransportAndClimateChange.org

Manager: Tali Trigg Cover photo: Nguyen Anh Tuan

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

TABLE OF CONTENTS

Abbreviations and Acronyms ...... 1

Executive Summary ...... 3 1 Introduction ...... 7

2 Transport and Climate Data ...... 8 2.1 General Information ...... 8

2.2 GHG Emissions from the Transport Sector ...... 10

2.3 Emission Reduction Potential from the Transport Sector ...... 13 2.4 Bottom-up data review ...... 16 2.4.1 Transport Activity ...... 16 2.4.2 Modal Share ...... 22 2.4.3 Energy Intensity ...... 28 2.4.4 Fuel Emission Factors ...... 34 2.5 Data Availability and Quality ...... 36 3 Policies and Institutions ...... 42 3.1 Institutional Structure and Stakeholders ...... 42 3.2 Regulatory Framework and Initiatives for Sustainable Transport ...... 47 3.2.1 Vietnam’s Response to Climate Change Mitigation and Adaptation...... 48 3.2.2 Vietnam’s Strategies for Sustainable Transport ...... 52 3.2.3 Vietnam’s Response to Energy Efficiency and Conservation ...... 56 3.3 Existing policies ...... 58 3.4 Finance……...... 61 3.5 Monitoring ...... 63 4 Barriers to sustainable, energy-efficient transport ...... 66 5 Activities by international organisations ...... 71 6 Policy recommendations ...... 77 References ...... 80 Annexes ...... 91 ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

LIST OF FIGURES

Figure 1: Map of Vietnam ...... 9

Figure 2: Estimated CO2 emissions from road transport, 2000-2010 ...... 11

Figure 3: Road transport CO2 emissions by vehicle type, 2010 ...... 11

Figure 4: Share of final consumption by economic sector, 2010 ...... 12 Figure 5: Road transport diesel and gasoline consumption ...... 12

Figure 6: GHG emissions and mitigation potential in Vietnam ...... 13

Figure 7: Marginal abatement cost curve for the transport sector ...... 16 Figure 8: Goods transport (left) and passenger transport (right) demand growth in Vietnam ...... 17 Figure 9: Goods and passenger transport demand growth in Vietnam...... 18 Figure 10: Volume of passenger traffic by type of transport ...... 19 Figure 11: Freight transportation volume (ton/day) by trip distance, 2008 ...... 21 Figure 12: Volume of freight traffic by type of transport ...... 22 Figure 13: Number of in-use motorcycles in Hanoi and Ho Chi Minh City...... 23 Figure 14: Mode share in Hanoi, 2003 ...... 24 Figure 15: Mode share by trip purpose in Ho Chi Minh City, 2004 ...... 25 Figure 16: Distribution by age of motorcycle and LDV in Hanoi ...... 30 Figure 17: Motorcycle distribution by age in Ho Chi Minh City ...... 30 Figure 18: Distribution of age of motorcycles ...... 31 Figure 19: Vietnam oil production and consumption, 1990-2010 ...... 33 Figure 20: Overview of primary responsibilities for transport policymaking ...... 44 Figure 21: Sustainable transport and climate change strategies in Vietnam ...... 48 Figure 22: International support for transport in Vietnam ...... 71

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

LIST OF TABLES

Table 1: Estimated GHG emissions by transport mode, 2005 and 2010 ...... 10

Table 2: Potential GHG emissions reduction in the transport sector in Vietnam ...... 14 Table 3: Overview of Backcasting Tool and Energy Forecasting Framework and Emissions Consensus Tool ..... 15

Table 4: Travel demand by mode in Hanoi city and adjoining districts ...... 19 Table 5: Modal shares by commodity (ton/day), 2008 ...... 26

Table 6: Projection of modal shares of freight transportation, 2008 and 2030 ...... 27 Table 7: Average journey speed by mode in Hanoi, 2003 ...... 28

Table 8: On-road vehicles’ average speed, 2010 ...... 29 Table 9: Estimated age of motor vehicles in circulation, 2009 ...... 29 Table 10: Estimated gasoline/diesel fuel split by mode in Hanoi, 2005 ...... 31 Table 11: Logistics performance index for Vietnam ...... 34 Table 12: Fuel consumption and emission factors of motorcycles for Hanoi ...... 35 Table 13: Fuel consumption and emission factors of LDVs for Hanoi ...... 36 Table 14: Averaged Emission Factors and Fuel Consumption Obtained from Motorcycles Tested on Chassis .... 36 Table 15: Challenges in availability, reliability, and quality of data that are relevant for emissions estimation in the Vietnam ...... 38 Table 16: Available emissions-relevant data in Vietnam ...... 39 Table 17: Organisations related to land transport in Vietnam ...... 45 Table 18: Targets for the GHG Reduction Task of the Green Growth Strategy ...... 50 Table 19: Decision No. 249/2005/QD-TTg emission limits of road motor vehicles1 ...... 55 Table 20: Vietnam roadmap for Euro 3, 4, 5 emission standards* ...... 55 Table 21: Passenger transport policies and measures: current status (end 2014) ...... 59 Table 22: Freight transport policies and measures: current status (end 2014) ...... 60 Table 23: Estimated budget of the tasks and projects for the implementation of the National Target Program . 62 Table 24: Current status of monitoring system for each group of policy in Vietnam ...... 64 Table 25: Donor activity on monitoring of policies ...... 72

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Abbreviations and Acronyms

ADB Asian Development Bank ASEAN Association of Southeast Asian Nations

ASIF Activity-Structure-Intensity-Factor of Emissions BAU Business-as-usual BMZ German Federal Ministry for Economic Cooperation and Development

BRT Bus rapid transit CEMDC Centre for Environmental Monitoring Motorcycle Driving Cycle CNG Compressed natural gas

CO Carbon monoxide

CO2 Carbon dioxide CTF Clean Technology Fund DRVN Directorate for Roads of Vietnam EIA Energy Information Administration EST Environmentally sustainable transport GDP Gross domestic product GHG Greenhouse gas GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (German International Cooperation) GSO General Statistics Office HAIDEP Comprehensive Urban Development Programme for Hanoi HC Hydrocarbon HCMC Ho Chi Minh City HMDC Hanoi Motorcycle Driving Cycle HDV Heavy duty vehicle HOUTRANS The Study on Urban Transport Master Plan and Feasibility Study in Ho Chi Minh Metropolitan Area IVE International Vehicle Emission model JICA Japan International Cooperation Agency km Kilometre KT Kiloton LDV Light duty vehicle LPG Liquefied petroleum gas MOF Ministry of Finance MOIT Ministry of Industry and Trade MONRE Ministry of Natural Resources and Environment MOST Ministry of Science and Technology MOT Ministry of Transport

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

MPI Ministry of Planning and Investment

MtCO2e Million metric tonne of carbon dioxide equivalent

MRV Measurement, reporting and verification NAMA Nationally appropriate mitigation action

NCCS National Climate Change Strategy NEDC New European Driving Cycle

NGO Non-governmental organisation

NOX Nitrogen oxide

NTP National Target Program to Respond to Climate Change NTSC National Traffic Safety Committee

PKT Passenger-kilometre travelled PM Particulate matter PTD Provincial Transport Department SEACAP South East Asia Community Access Programme STAMEQ Directorate for Standards, Metrology and Quality

SO2 Sulphur dioxide SUV Sports utility vehicle

tCO2e Ton of carbon dioxide equivalent TDSI Transport Development and Strategy Institute TKT Ton-kilometre travelled TOE Ton of oil equivalent UMRT Urban Mass Rapid Transit UNDP United Nations Development Programme UNEP United Nations Environment Programme UNCRD United Nations Centre for Regional Development UNFCCC United Nations Framework Convention on Climate Change USAID/RDMA The United States Agency for International Development Regional Development Mission for Asia VEA Vietnam Environment Administration VEMA Vietnam Expressway Management Administration VGG Vietnam Green Growth Strategy VITRANSS Study on National Transport Development Strategy VITRANSS 2 The Comprehensive Study on the Sustainable Development of Transport System in Vietnam VKT Vehicle-kilometre travelled VNEEP Vietnam National Energy Efficiency Program VNR Vietnam Railways VOC Volatile organic compound VR Vietnam Register

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Executive Summary

A sustainable and efficient transportation system is important in ensuring sustained economic growth, social progress and environmental protection. This report reviews existing data, policies and international donor activity in the area of sustainable transport in Vietnam, in order to provide policy-makers, researchers, international organisations and other stakeholders a reference document for sustainable transport in the context of energy-efficiency and climate change.

Transport and Climate Data

Transport is the third largest greenhouse gas (GHG) emitter in the energy sector in Vietnam, accounting for 31.8 MtCO2e or 23% of the energy sector emissions in 2010. Within the transport sector, road transport represents the largest share (68.5%), with passenger transport being responsible for 71% of the total road transport emissions, whilst freight transport accounts for 29%. Characteristic to Vietnam’s transport system is the popularity of motorcycles, which comprises approximately 95% of passenger vehicles. Freight transport is dominated by trucks and is characterised by short-distance trips to and from Hanoi and Ho Chi Minh City, particularly under 200 km. Growth in transport demand has led Vietnam to become a net importer of oil in 2011. Projections also indicate a significant rise in Vietnam’s total GHG emissions, especially road transport emissions, which are estimated to increase at an average annual rate of 12.5%. While

Vietnam’s current transport emission per capita (0.4 tCO2e/year) is lower than that of Indonesia (0.5 tCO2e/year), Thailand (0.8 tCO2e/year) and the world average (1.0 tCO2e/year), several studies estimate that passenger and freight transport demand will soar 9-10 times by 2030 from 2005. In spite of the slowdown in motorcycle sales in recent years, this projection is attributed to a greater degree to substantial increase in car ownership, despite high taxes on cars and fuel prices. Road- based freight transport, in particular, is also projected to increase. This report evaluates the existing transport-related data using the factors of the ASIF equation, namely, Activity-Structure-Intensity-Fuel (ASIF), in order to analyse the GHG emission profile of Vietnam’s transport sector. This represents the total transport activity in passenger-kilometre travelled (PKT) and ton-kilometre travelled (TKT), the modal split, fuel intensity and emission factors. The quality and the availability of data remain a challenge as data collection is often fragmented and often conducted on an ad-hoc basis. Some transport-related data and statistics are relatively well-collected by the government, but they are not always readily available. Other relevant parameters, including vehicle speed and age, travel behaviour, in-use vehicles, modal split, fuel efficiency of the vehicle fleet, load factors and occupancy rates are not yet available. Vietnam submitted its first Biennial Update Report in 2014, however there is considerable uncertainty in GHG emission projections towards 2020 and 2030. Information on mitigation potential and costs of transport options exists, however can be regarded as fragmented.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Policy Review

The Ministry of Transport is the central body for planning, managing and maintaining national transport infrastructure and developing policies, including energy and climate change related. For many ‘improve’ related policies, co-operation of several central government ministries like Ministry of Industry and Trade, Ministry of Nature Resources and Environment, Ministry of Science and Technology, Ministry of Finance is a prerequisite. The MOT’s responsibility also extends to assisting

local governments in project selection. The MOT prepares the long-term transport strategy, a five year Public Investment Program and receives the funds from the annual state budget. These are

based upon strategic orientations and decisions from the National Assembly and the Prime Minister, some of which have a focus on sustainable development issues such as climate change and resource consumption, as well as other environmental protection laws. The overall strategic sustainable transport policy framework centres on the Environmentally Sustainable Transport strategy, the Climate Change Action Plan and the Sustainable Development Plan of MOT, and the Transport Development Strategy. The National Climate Change Strategy, Green Growth Strategy and Energy Efficiency Programmes are drivers for these, and help in particular by including ‘improve’ measures in the transport strategies. These include objectives and specific targets related to public and multi-modal transport, energy and emission-savings, as well as the limitation of growth in private motorisation. They can be regarded as rather comprehensive, even if somewhat general in nature. Many actions are listed, and though budget estimates are included it is not always allocated for. Cooperation with the private sector is an important policy objective, but not yet well developed. Moreover, lack of implementation of policies is mentioned in different studies and plans. Balancing different interests related to environment, congestion, industry and finance also poses challenges. An improved prioritisation process for transport policies and investment, such as through the Climate Change Action Plan, may help overcome some of the difficulties. Climate change instruments such as nationally appropriate mitigation actions (NAMAs) can also help build a framework for sustainable transport measures, in addition to bringing in international technical and financial support. This report reviews the transport policies and measures based on the Avoid-Shift-Improve approach. It appears that most of the key policies, particularly in the passenger transport sector, are being planned, piloted or implemented. In relation to fuel economy policies for new vehicles, mandatory labelling for new passenger cars (up to 7 seats) and voluntary fuel economy standards (for passenger cars and motorcycles) are in place as of 2015. Together with the Euro 4 and Euro 3 emission standards for new cars and motorcycles in 2017, these provide a good basis for moving towards mandatory fuel economy standards. The government has also established an inspection and maintenance programme for cars, motorcycles and trucks since 2006, albeit lacking in effective implementation due to uncalibrated equipment and outdated test procedures as well as limited capacity of the inspectors. In the context of tyres, it appears that no policy discussions on energy-efficiency standards or labelling are taking place.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

The emissions associated with poor enforcement of regulations in the road-based freight transport

sector is also compounded by the fragmentation of the truck industry, with a large network of small-

scale trucking companies that lack economies of scale to upgrade their vehicle fleets or optimise their supply chain.

Vietnam’s Environmentally Sustainable Transport strategy, in line with the Transport Development Strategy, calls for “controlling the demand for private motorised travel through a combination of

policies, such as regulatory measures (manage demand for road space), fiscal policies (such as parking fees, vehicle taxes, road or congestion charging, and fuel taxes, etc.), and infrastructure design measures”. Such initiatives are only partially implemented at this stage.

Many cities in Vietnam have set targets for public transport to increase its modal share to 25-45% in

2020-2030, whereas currently few have higher than 10%, though increasing. Motorcycles appear to be more attractive to most people, while providing higher accessibility in many (sub) urban areas. It is not clear whether current policies and plans, including for BRT and MRT, are sufficient in achieving these targets. There is no comprehensive national urban transport policy in place or planned. For ‘Avoid’ and ‘Shift’ in freight transport there appears to be less, though increasing, policy attention. From an extensive inventory of financial and technical support programmes by international organisations for sustainable transport in Vietnam it appears that both passenger and freight sectors are well represented, even if there is not much activity on energy efficiency in freight.

Policy Recommendations Improve Improving the fuel efficiency of new vehicles (the short term option with the highest mitigation potential) requires thorough analysis of the vehicle market,1 reliable test procedures and stakeholder dialogues to ensure the fuel economy standards are fair and will deliver real savings compared to business-as-usual. Given the preponderance of motorised two-wheelers, energy efficiency and electrification should be analysed and strongly considered as high-potential actions. As for fuel economy standards for heavy-duty vehicles, it is encouraging that Vietnam has started discussions as well.

Avoid and Shift Effective policy options to alter the patterns of private vehicles ownership and its use and promote public and non-motorised transport include CO2-based vehicle taxation, market-based mechanisms like auctioning titles, congestion charges and parking charges, and requiring road users to pay for infrastructure and services.

1 See upcoming 2015 TCC report on fuel efficiency in Vietnam. 5

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

In addition, transit-oriented development and other integrated land-use planning concepts, which are

not well developed yet in Vietnam, are needed to further reduce the need for motorised travel and

make the alternatives attractive. This requires long-term planning and discussion among a range of public and private stakeholders. Achieving the public transport targets further requires substantially

improving public transport, including implementing bus rapid transit and rail systems, as well as the quality of service.

Freight and Logistics Useful interventions are in the area of enhancing logistics such as reducing empty backhauls, improving the routing of distribution system, clustering destinations together, setting up an online

freight exchange (clearing house), and constructing logistics centres efficiently. Moreover, the private sector itself has a large role to play in improving freight and logistics, e.g. by providing technology such as radio frequency identification tags, global positioning system and vehicle routing software which are necessary to optimise street networks. Introduction of green freight labelling schemes and other information and communication instruments can also be considered.

Data, Indicators and Monitoring Progress on sustainable transport often starts with data, which creates awareness and corresponding action. Local air pollution is example of a key issue that can expedite transport policies, as this is visible directly to citizens. Even though energy efficiency and climate change are less ‘visible’ problems, they can be mainstreamed into transport policy by monitoring appropriate indicators. Currently policy monitoring takes place based on policy-specific transport indicators but is not necessarily made public. A communication strategy beyond climate change related issues may be helpful to inform the public about the progress towards sustainability. In order to move towards a more comprehensive monitoring system, increased collaboration between different public and private organisations that are already collecting data is required, as well as a central management system with consistent data formats, and incentives to make reporting on indicators an integral part of policymaking and an overall sustainable transport strategy.

Final considerations Climate change instruments such as nationally appropriate mitigation actions (NAMAs), which Vietnam is currently developing for urban transport, fuel efficiency and green freight, can also help build a framework for sustainable transport measures, in addition to bringing in international technical and financial support.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

1 Introduction

The member countries of the Association of Southeast Asian Nations (ASEAN) are experiencing robust economic growth in the recent years. This growth has resulted in a rapid increase in the demand for motorized transportation. With the 2nd largest vehicle fleet in Asia just after China, the

ASEAN region already faces serious problems including congestion, poor energy efficiency, high oil imports, air pollution and road safety. However vehicle registrations are still increasing by over 10% annually in many countries, while shares of sustainable modes such as public transport and rail/water freight transport are often decreasing. With transport consuming approximately 25% of

final energy and over 50% of oil consumption (OECD/IEA, 2013) it is also a significant and growing emitter of CO2 and black carbon. Vietnam and other ASEAN countries are now facing significant challenges in providing sustainable, adequate and timely transport solutions that can keep up with the demand while minimizing the impacts. These challenges are recognised at the regional level in the ASEAN Strategic Transport Action Plan (ASEAN, 2010) which calls for establishing ‘a sustainable, energy efficient and environmentally- friendly transport system’ and in the Vietnam in national strategies, as can be seen in the current report. Even though energy-efficiency measures in transport often benefit the economy, consumers and the environment, realising sustainable, low-carbon transport system is a daunting task and requires strong policy action as well as shifts in vehicle production patterns and consumer preferences. The ‘Energy Efficiency and Climate Change Mitigation in the Land Transport Sector in the ASEAN 2 Region’ project (in short ‘Transport and Climate Change’) aims to contribute to the development, implementation and monitoring of strategies and action plans towards the improvement of energy efficiency and the reduction of greenhouse gas (GHG) emissions. At the regional level this includes development of an ASEAN policy or strategy as well as guidelines and templates for national policies and action plans for Member States. At the national level it aims at development of action plans and measures in five countries, and implementation of these according to national plans in at least three ASEAN Member States, as well as improvement of the measurement, reporting and verification (MRV) system in five countries: Indonesia, Malaysia, the Philippines, Thailand and Vietnam. This report aims to provide an up to date picture of the transport sector and transport-related greenhouse gas emissions and mitigation policies in Vietnam for the project team, policymakers, and international organisations, as well as identify gaps, needs and potential areas for assistance and policy recommendations. It covers the full land transport sector, including passenger and freight, and discusses existing data based on the Activity-Structure-Intensity-Fuel (ASIF) approach (Chapter 2), policies and monitoring for sustainable transport and climate (Chapter 3), barriers towards low- carbon transport (Chapter 4), international donors (Chapter 5), and finally recommendations for further action on policy development and capacity-building. The report is based on existing literature and policy documents and interviews with policymakers and experts.

2 www.TransportAndClimateChange.org 7

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

2 Transport and Climate Data

This chapter gives an overview of key trends of transportation and its environmental-related issues in Vietnam, such as vehicle sales and stock, transport demand, emissions, modal split in passenger and freight, average vehicle-kilometre travelled (VKT) by vehicle and fuel type, vehicle population by

vehicle and fuel type, average speed, emission factors, fuel characteristics, gross domestic product (GDP), total population, average occupancy and average load factors, among others. Relevant data and emission indicators of transport sector are crucially needed for policy and decision makers to track the progress of policies that aim to increase energy efficiency and to reduce GHG emissions.

The need for better governmental data is expected to increase considerably as climate negotiations and communications for an MRV mechanism would be used to assess emissions pledges and/or

obligations.

2.1 General Information Vietnam has seen an average of about 7% annual GDP growth rate over the past 10 years and this has enabled the country to accelerate infrastructure development. Its political centre is Hanoi with about 6.5 million people, while its largest city, Ho Chi Minh City (HCMC), has about 9 million. The port cities of Hai Phong and Da Nang have seen increased urbanisation in recent years and have become important areas for trade and commercial activities.

 Geography Vietnam is located in South East Asia. It is bound by the South China Sea to the east, Laos and Cambodia to the west and China to the north. The country can be divided into three regions, North Vietnam, Central Vietnam and South Vietnam. Vietnam is a strip of land shaped like the letter “S”. The S-shaped country has a north-to-south distance of 1,650 kilometres and is about 50 kilometres wide at the narrowest point. Vietnam’s territorial waters equal about 1,000,000 km2, with an over 3,000 km long coastline.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Figure 1: Map of Vietnam

 Demographics Vietnam is home to 54 ethnic groups; among them, the Kinh is the largest group which accounts for 86.2% of the country's population. As of mid-2015, the population of Vietnam is about 94 million and it is growing by approximately 1.0 % every year3.

 Urbanisation Vietnam has seen its urban areas developing since 1990, with an urbanization rate of 17-18%. The number of urban areas rose from 500 in 1990 to 649 in 2000 and 656 in 2003. Now, the nation has 772 urban areas: following the classification by the Vietnamese government, this includes two special areas in Hanoi and HCMC, and 15 first-grade, 14 second-grade, 47 third-grade, 64 fourth-grade and

3 https://www.cia.gov/library/publications/the-world-factbook/geos/vm.html 9

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

630 fifth-grade cities. As of 2014, 30.5 million people live in urban area (33% of the population)4 and

as of January 2015, the urbanization rate is 34.5%.

2.2 GHG Emissions from the Transport Sector

As the second country in the ASEAN after Singapore, Vietnam submitted its Biennial Update Report in December 2014 (MONRE, 2014). Its GHG inventory shows the energy sector emitted a total of 141 MtCO2-eq (fuel combustion + fuel production). Out of this, 31.8 MtCO2-eq or 23% was

from the transport sector. In 2011, it was about 33 million tCO2 (World Bank) or 0.37 tonnes per capita.

Within the transport sector, road transport accounts for the largest share of emissions (68.5% in 2010), followed by maritime transport (18.9% in 2010) (Table 1). In terms of emissions by fuel type, diesel oil is the dominant source of emissions in the transport sector, at 42.7% in 2010, closely

followed by gasoline (see Figure 5 (World Bank, 2009). Figure 2 illustrates CO2 emissions from road transport in Vietnam from 2000 to 2010 as estimated by Clean Air Asia (2012). During this period,

the road transport CO2 emission in the country is estimated to have increased at an annual average rate of 12.5%. In particular, emissions from two-wheelers/motorcycles constitute the largest share of road transport CO2 emissions (Figure 3).

Table 1: Estimated GHG emissions by transport mode, 2005 and 2010 2005 2010 Mode of transport tCO2e % tCO2e % Roads 15,635,187 67.4 24,560,559 68.5 Inland waterways 475,734 2.0 759,976 2.1 Railways 838,907 3.6 1,340,138 3.7 Aviation 1,565,649 6.8 2,410,315 6.8 Maritime 4,694,743 20.2 6,761,252 18.9 Total 23,210,220 100.0 35 832 240 100.0 Source: World Bank, 2009

4 http://www.worldometers.info/world-population/vietnam-population/ 10

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

35.0

30 30.0 28 25 2 25.0

CO 21 20.0

18 16 tonnes 15.0 14 12 13 10 10.0 8

Million

5.0

0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Figure 2: Estimated CO2 emissions from road transport, 2000-2010 Source: Clean Air Asia, 2012. Accessing Asia: Air Pollution and Greenhouse Gas Emissions from Road Transport and Electricity

29% 46% 3%

19% 3% 2W PC BUS LCV HCV

Figure 3: Road transport CO2 emissions by vehicle type, 2010 Source: Clean Air Asia, 2012. Accessing Asia: Air Pollution and Greenhouse Gas Emissions from Road Transport and Electricity

In 2010, the transport sector ranks third after the industry and residential sectors in terms of share of total energy consumption, constituting of 22% of the overall energy consumption (Figure 4). The share of transport sector in the total energy consumption has increased from 14.7% in 2000 to 22% in 2010. Figure 5 illustrates the trend in gasoline and diesel fuel consumption in the road transport sector from 1980 to 2010, and shows that the road transport sector consumed slightly higher diesel fuel compared to gasoline fuel in the past two decades. In a business-as-usual scenario, the proportion of diesel consumption is projected to rise from 48% in 2010 to 71% in 2040 (World Bank, 2013).

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

6000 Diesel fuel consumption (ktoe)

Gasoline fuel consumption (ktoe) 5000 33% 40% 4000

3000 ktoe

2000 4% 22% 1000

Residential Commerce & Services

0 Transport Industry

Agriculture 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Figure 4: Share of final consumption by economic sector, 2010 Figure 5: Road transport diesel and gasoline consumption Source: Toan, PK and Hung. TM, 2013 Source: World Bank Open Data, 2013

According to the World Bank report entitled Vietnam: Expanding Opportunities in Energy Efficiency (2010), Vietnam’s energy consumption has tripled during the period 1997-2007 and is likely to triple again over the next decade if mitigating measures are not taken. Meanwhile, a study released by the World Bank in 2013, Low Carbon Development Assessment in Transport Sector, projects that their energy consumption will increase eight-fold between 2005 and 2025 on the average. Energy demand for transport is projected to increase from 11 million tonnes of oil equivalent (TOE) in 2010 to 45-58 million TOE in 2030. Annex 2 provides the forecast of energy demand by sector with three plans (low, base and high) for the 2010-2030 period, with the low and high estimates being 45 and 58 MTOE respectively, illustrating uncertainty. Based on estimates from the Preliminary Study on Sustainable Low-Carbon Development Towards 2030 in Vietnam (Nguyen, et al., 2010) passenger transport was estimated to account for 15 Mt (71%) of the

total CO2 transport emissions in 2005 while freight transport was responsible for 6 Mt or 29%. Both passenger and freight transport are projected to increase significantly in the next decade. According to the study, passenger transport is expected to soar 9 times to 519 billion passengers-km in 2030 from the 2005 figure of 57 billion passengers-km. Likewise, freight transport demand is expected to increase over 10 times to 1085 billion tonne-km in 2030 from the 2005 figure of 101 billion tonne- km. These trends result in 110 and 41 MtCO2 respectively in 2030 in the BaU scenario. The Biennial Update Report projects transport sector energy consumption to rise from 14.4 MTOE in 2015 to 19.5 and 31.8 MTOE in 2020 and 2030 respectively, implying a 5.4% average annual growth rate. This is based on a 7% GDP growth rate across the same period. GHG emissions in

transport are projected to rise to 87.8 MtCO2e in 2020, with the same figure being included for 2030.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

2.3 Emission Reduction Potential from the Transport Sector

Nguyen et al. (2012) projects a 23 million tCO2e and 29 million tCO2e emission reduction in 2030 from passenger transport and freight transport, respectively, by adopting a selection of low carbon measures. Note that freight transport relies on roads, carrying 71% of total weight volume in 2005, while the rest are transported by maritime (27%) and rail (2%). Vietnam anticipates a growth in emission from freight transport due to rapid development in the industry sector; thus, the proposed countermeasures include modal shift from trucks to rail (increase to from 2% to 5%) and maritime transport (increase from 27% to 30%) which reflects a 4.0 MtCO2e emission reduction, as well as

improving the efficiency of vehicles being used and the switch to biofuel from oil, reflecting emission reductions of 23.9 MtCO2e and 1.1 MtCO2e, respectively.

Figure 6: GHG emissions and mitigation potential in Vietnam Source: Nguyen T. H., et al., 2012

The report’s policy package for the transportation and their corresponding estimated emissions reduction potential include the following: • Modal shift: Transform passenger transport from vehicle to walking, bicycle, train or bus and

transform freight transport from large vehicle to train, ship, boat or ferry: 13.6 MtCO2e. • Eliminating and alternating old and unqualified vehicles, promoting high energy efficiency

vehicles: 37.3 MtCO2e.

• Encouraging environmental and economical fuel for vehicle such as biofuel: 1.4 MtCO2e.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

The Government of Vietnam, as part of the Clean Technology Fund grant proposal (Valkovic, n.d.),

likewise summarises potential emission reduction interventions in the transport sector including

potential savings and indicative costs in Table 2. The World Bank also carried out a specific study on the mitigation potential of the transport sector in Vietnam in 2009. Three strategies were deemed

central to mitigation considering the change they could foster on the impact of this sector on GHG emissions: fuel switch, modal shift and efficiency improvement.

In another study in 2011, the World Bank outlines several mitigation opportunities in Vietnam and their theoretical emission reduction. According to the document, however, a true marginal curve that considers real costs and identifies which opportunity will be best for reducing GHG emissions and, at the same time, for generating financial benefits will require more research. Since motorcycles are responsible for a large fraction of vehicular emissions in Vietnam and passenger car ownership is projected to increase as income level increases, the improvement in fuel efficiency must remain a priority for Vietnam, including a modal shift from road freight to inland waterways, coastal shipping, and railways (World Bank, 2011). The study indicates that such mitigation opportunities in the transport sector can theoretically reduce 18.37 MtCO2e annually, while its feasible medium-term

(2015) goals could reduce 5.49 MtCO2e annually. These mitigation opportunities, as well as the respective barriers to their implementation, are detailed in Annex 3. Additionally, according to Energy Outlook for Asia and the Pacific (Asian Development Bank [ADB], 2013), shifting towards more efficient internal combustion engine and hybrid vehicles could result to an energy savings of 3.1 million TOE in 2035.

Table 2: Potential GHG emissions reduction in the transport sector in Vietnam

Activities planned Potential Emissions Sector/ Indicative Costs or underway Reductions Sub-sector Urban rail Initial construction 1.6 MtCO2e/year in major cities USD 50-150 million/km on 5 lines in Hanoi; (from rail lines plus connectivity initial design stage investments) for 6 lines in HCMC Bus rapid transit n/a 0.33 MtCO2e/year in Hanoi and USD 2-10 million/km HCMC Electric vehicles n/a 4.2 MtCO2e year by introduction USD 750/motorcycle of electric motorcycles replacing 50% of fleet Fuel switching Pilot testing of CNG E10 and B10 targeted by 2020; Development funding (CNG, LPG, in HCMC buses; E20 potential is 1.6 MtCO2e/year needed for feasibility and biofuels) initial biofuel studies and front-end production engineering design Note: This was prepared for the application for Clean Technology Fund Project Preparation Grant. Source: Valkovic, n.d. CTF Joint Mission notes; GHG reduction estimates from ADB (for urban rail) and World Bank Carbon

Finance Assist, 2009 (for other interventions).

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Scenario Development

The current and the future scenarios of transport emissions are being simulated in the Energy

Forecasting Framework and Emissions Consensus Tool (EFFECT) model of World Bank5 and in the Backcasting Tool of Institution for Transport Policy Studies (ITPS)6.

The table below (Table 3) summarises the assumptions and scenario results of these two studies.

More detailed information of these studies will be provided in Annex 3. Table 3: Overview of Backcasting Tool and Energy Forecasting Framework and Emissions Consensus Tool

Energy Forecasting Framework and Emissions Consensus Backcasting Tool Tool (EFFECT) Period of study 2010 as the base year; 2005–2050 2010 as the base year; 2010–2040 Vehicle 89 million vehicles by 2050, 57 million of which will Increases 2.5 times from 26.1 million vehicles in the base year 2010 to 64.6 population be motorcycles million vehicles by 2040 Modal share Motorcycle: Motorcycle: The share of the motorcycles in the total fleet in The annual growth rate of motorcycles, however, decreases over 10-year Vietnam will be 63%, much lower than its share in periods: 3.84% during 2010-2020, 2.61% during 2020-2030, and finally 1.65% 2005 of 97%, mainly due to an increase in car during 2030-2040. population Car: Car: Passenger cars will have the highest growth rates (10.8% over the period Growth at annual average of 12% from 2005-2050. 2010-2020, and 13.0% over the period 2020-2030); but will decrease to 8.6% during 2030-2040. They are expected to increase from about 0.5 million cars in 2010 to 10.2 million cars in 2040 BAU Scenario Passenger, freight and emissions (2050): Passenger, freight and emissions(2040): • Passenger travel = 2,235 billion passenger‐km; • Passenger travel = 740.96 billion passenger-km; vehicle population = 64.6 vehicle population = 89 million vehicles, 57 million vehicles. Motorcycles will dominate the road transport fleet. million of which will be motorcycles. • Petrol consumption consumed for road transport vehicles is expected to • Freight travel = 510 billion ton‐km; freight mode increase twice in 2040 from its 2010 value. Biofuel consumption is also share is expected to be dominated by road expected to increase most especially by the urban buses

transport. Heavy commercial vehicles are • Freight travel = 637.5 billion ton-km; heavy commercial vehicles is expected expected to increase. Air freight activity is to increase but light commercial vehicles is expected to grow faster. Freight expected to grow at an average of 4% (million shift from road to rail is expected to increase. ton-km) • TransportCO2 emissions = 103 million tCO2).The total of other emissions • Transport CO2emissions = 144.7 million tCO2, including CO, NOx, VOC, PM emissions (only calculated for on-road 26% and 25% of which are from cars and vehicles) is expected to reduce from nearly 2,500 Gg in 2010 (275,577 tons) motorcycles, respectively. Interregional to 600 Gg (661,386 tons). transport will contribute 57% of the total transport emissions. Alternative Passenger, freight and emissions (2050): Scenario • Passenger travel = 995.88 billion passenger- km; passenger mode share of cars will decrease to 6% and that of motorcycles will also decrease to 25%. Meanwhile, that of urban bus will increase to 59%. • Freight travel activity will be limited to 275.34 [The simulation results for the alternative scenarios are being developed.] billion ton-km; freight mode share will be dominated by maritime (39%) and rail transport (37%). • Total transport CO2emissions will be 51.2 million tCO2by 2050.

5 The EFFECT model can be accessed at http://www.esmap.org/EFFECT 6 The Backcasting Tool is one of the components of the Study for Long-Term Transport Action Plan for ASEAN (LPA Project) which was led by the Institution for Transport Policy Studies (ITPS), supported by the Nippon Foundation, and implemented in cooperation with Clean Air Asia, the Indonesia Transport Society, the National Center for Transportation Studies of the University of the Philippines, and the Mizuho Information and Research Institute (MHIR). It builds upon the previous collaborative work that have been done by ITPS, Clean Air Asia, the Transport Research Laboratory (TRL), and the selected experts on the development of Visioning and Backcasting Tools and data collection initiatives developing long-term plans of actions for low emission transport in Southeast Asia. More information is available at http://cleanairasia.org/portal/LPA 15

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Marginal Abatement Cost Curve for Vietnam

A study by the World Bank (2014) suggests that a large fraction of the mitigation potential in the transport sector has negative abatement costs. The EFFECT model is used, based on assumptions for low-carbon scenarios from expert judgement. Figure 7 presents the MAC curve, showing costs and potentials cumulative over the 2010-2030 period; the impacts start mainly after 2018. The WB analysis suggests that there is a high mitigation potential in e.g. improving inland waterways, energy

efficiency of private vehicles (including moving to Euro IV), increasing the use of electric bikes and modal shift to buses at a negative cost to society.

Note: Mitigation potential is the cumulative reduction over the 2010–2030 period, with the main impacts after 2020. Figure 7: Marginal abatement cost curve for the transport sector Source: World Bank, 2014

2.4 Bottom-up data review The relevant data and emissions in transport sector will be reviewed according to a framework of emissions from transport named Activity-Structure-Intensity-Fuel (ASIF) approach (Schipper & Marie-Lilliu, 1999). In this approach, transport emissions are dependent on the level of transport activity (A), the transport mode structure (S), the fuel intensity (I), and the carbon content of the fuel or emission factor (F). By using the ASIF approach, there are a lot of data related to each ASIF factor depending on dimensions and levels of estimation details which can be achieved using either a top-down (based on fuel consumption) or a bottom-up approach (based on travel activity). The ASIF framework, further elaborated in Annex 1, provides a diagramme for understanding the transport system, its energy use and emissions.

2.4.1 Transport Activity Transport activity (A) is a primary cause of fuel consumption and GHG emissions. Movement of people and goods depends on many factors including: demographics, income, economy and its composition, and urban form (Zegras, 2007). Generally, the unit of transport activity (A) is passenger-kilometre travelled (PKT) for passenger transport, and ton-kilometre travelled (TKT) for 16

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector freight transport. While these transport activity units are not recorded or surveyed regularly in

Vietnam, annual estimates are provided by the General Statistics Office of Vietnam (GSO). GSO

releases the statistics based on surveys they conduct and on the reporting system of the MOT. Their data show passenger demand (in p-km travelled) has been rising 8-10% per year in the period 2010- 7

2013, while freight demand does not show an increasing trend since 2010 .

Forecasts predict a surge in demand of all modes of passenger and goods transport by 2020 and

2030. In 2007, as part of the Transport Development Strategy of Vietnam up to 2020, MOT projected an average growth rate of goods transport and passenger transport demand of about 7.3% and 12% per

year between 1990 and 2030, respectively (Figure 8). A significant growth in demand is projected by The Comprehensive Study on the Sustainable Development of Transport System in Vietnam (VITRANSS 2)8, as illustrated in Figure 9.

Mil. Ton-km Good Transport Demand (1990-2030) Mil. Pax-km PassengerTransport Demand (1990-2030) 160.000 600.000 140.000 500.000 120.000 400.000 100.000

80.000 300.000 60.000 200.000 40.000 100.000 20.000

0 0

Railway Road Inland Maritime Aviation Railway Road Inland Maritime Aviation Waterway Waterway (Coastal) 1990 (1) 2005 (1) 2020 (2) 2030 (3) 1990 (1) 2005 (1) 2020 (2) 2030 (3)

Average Growth: 7.3% p.a. Average Growth: 12% p.a. Figure 8: Goods transport (left) and passenger transport (right) demand growth in Vietnam Source: Ministry of Transport, 2007

7 http://www.gso.gov.vn/default_en.aspx?tabid=781 (accessed 3 July 2015) 8 Some of the important sources of data include the comprehensive national traffic surveys conducted in 1999, 2005, 2008 as part of the project VITRANSS (2000), which was a Study on National Transport Development Strategy. The type of information gathered in three surveys covers traffic volume, origin-destination patterns, loading characteristics and vehicle characteristics. The study team deemed it necessary to conduct another traffic survey in 2008 due to the “fast growth of traffic and the impact of motorisation.” Moreover, the traffic surveys conducted prior to 2008 excluded motorcycles and other smaller vehicles, and the traffic stations where the surveys were conducted (39 stations in 1999, 64 in 2005) were spread all over the country. In contrast, the 2008 traffic survey included motorcycles and focused on 55 selected stations along key cordon lines and the north-south axis of the country. VITRANSS 2 (2010) was on The Comprehensive Study on the Sustainable Development of Transport System in Vietnam. 17

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Figure 9: Goods and passenger transport demand growth in Vietnam Source: VITRANSS 2, 2010  Passenger travel activity The road traffic survey of VITRANSS 2, where 20,895 vehicles were surveyed9, shows that a considerable number of motorcycles and bicycles run on national roads. While vehicle composition varies, trucks comprise more than 50% of the total number of four-wheeled vehicles while passenger cars and buses comprise approximately 20% and 30%, respectively. A summary of the road traffic count is provided in Annex 6. Figure 10 illustrates the national PKT trend from 1995 to 2011, using data from GSO. A Study of Long-Term Transport Action Plan for ASEAN" by ITPS and Clean Air Asia shows the vehicle fleet has grown at an average of 16% per annum from 2000-2012, and a high correlation between PKT and vehicle population was observed. The total PKT in Vietnam is anticipated to reach 741 billion in 2040 from 217 billion in 2010, according to the BAU scenario estimated by a report undertaken by the World Bank (2013), see also Table 3. While road transport is expected to account for the largest proportion of PKT in 2040, passengers are expected to shift from road transport to rail transport. The trend of vehicle growth and its composition will be discussed further in Section 2.4.2.

9 The survey covered 2,134 cars, 4,523 buses, 9,554 trucks, and 4,684 motorcycles. The overall sampling rate was 3.6%, excluding motorcycles and bicycles. 18

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Figure 10: Volume of passenger traffic by type of transport Source: Statistical Yearbook 2014 (GSO)

Overview of transport activity in Hanoi

The travel demand in Hanoi excluding walking in 1995 was estimated at 3.1 million trips/day. In 2005, it grew to 6.5 million trips/day or 1.74 trips/person/day. Annex 7 presents a summary of travel characteristics from a 2003 household interview survey conducted by the Transport Development and Strategy Institute (TDSI) covering 10,000 questionnaires in inner-city districts and suburbs districts in Hanoi (Schipper et al., 2008). During the period 1995-2005, there was an increase in the number of trips by private motorcycles and cars by 545% and 2443%, respectively, but a decrease in the share of bicycle trips by 29% (Table 4).

Table 4: Travel demand by mode in Hanoi city and adjoining districts Share of Total Vehicle Trips No. of Trips (000/day) (excludes walking) (%) 1995 2005 Percent 1995 2005 increase in Hanoi Hanoi Adjoining Hanoi Hanoi Adjoining Total Hanoi City: Total Travel Mode City City districts 1995-2005** City City districts Bicycle 2,257 1,598 486 2,084 -29% 73 24 52 28 M/C*(drive 3,619 331 3,950 55 36 53 r) 632 545% 21 M/C 459 41 500 7 4 7

Private (passenger) Car 7 178 6 184 2443% 0 3 1 2 Truck 21 57 9 66 171% 1 1 1 1 Subtotal 2,917 5,911 873 6,784 103% 95 90 94 91

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Share of Total Vehicle Trips

No. of Trips (000/day) (excludes walking) (%)

1995 2005 Percent 1995 2005 increase in Hanoi Hanoi Adjoining Hanoi Hanoi Adjoining Total Hanoi City: Total Travel Mode City City districts 1995-2005** City City districts Taxi - 57 2 59 - - 1 0 1

Bicycle - 3 1 4 - - 0 0 0 rickshaw public - Moped taxi - 74 6 80 - - 1 1 1 (Xeom) Semi Private bus - 95 4 99 - - 1 0 1 Subtotal - 229 13 242 - - 3 1 3

Bus 165 382 32 414 132% 5 6 3 6 Rail - 0 0 0 - - 0 0 0 Public

Subtotal 165 382 32 414 132% 5 6 3 7 Others*** - 23 8 31 - 5 0 1 0 Total (excl. 3,082 6,545 926 7,471 112% 100 100 100 100 walking) Walking trips 3,141 2,176 688 2,864 -31% 50 25 43 28 Total (incl. 6,223 8,721 1,614 10,335 40% walking) Note: Due to all values being rounded to the nearest integer, some nonzero percentages may appear as 0%. * M/C designates motorcycle. ** The 1995–2005 percentage increase was calculated using only Hanoi City data from 1995 and 2005, because data from adjoining districts were not available for 1995. % increase = [(Hanoi City 2005 – Hanoi City 1995) / Hanoi City 1995] * 100. *** Other forms of transport—boats, etc. Sources: Vietnam Urban Transport Assistance Project (VUTAP), 1995; ALMEC, 2007.Obtained from Schipper et al. (2008).

Overview of transport activity in Ho Chi Minh City In 1996, Department for International Development (DFID) conducted a survey covering 10,000 households. The study estimated a gross travel demand in the city as 8.2 million trips/day. A 2003 survey conducted by JICA interviewing 20.8 thousand households as part of HOUTRANS found that the gross travel demand has increased to 13.9 million trips/day (Mai, Ba, & Chinh, 2013) or 2.57 trips/person/day.

Overview of rural areas A rural household survey called Time and Distance Study was conducted by TDSI in 2006 and funded by DFID for MOT as part of the South East Asia Community Access Programme (SEACAP). The survey included two communes of Son La province as representative of the mountainous terrain (204 households), 2 communes of Thanh Hoa province as representative of the plains terrain (202 households), and 2 communes of An Giang province as representative of the delta terrain (203 households). Based on survey results, travels in Thanh Hoa and Son La provinces (representing the flat and mountainous regions) were mainly made by walking and cycling, accounting for 80% of the total journeys. In An Giang province, the trips made by foot and by bicycles accounted for only 60% because they also travelled by boats. The trips made by motorcycles accounted for 8% to 24% while those by passenger cars were not as significant (1.4% to 4.2%). (However, the survey highlights that

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector the local people in poor households in some mountainous locations usually have a “vague

perception on time and distance” and have “poor estimating skills” for such indicators,

recommending further that future surveys utilise familiar measurement units such as sun positions.)

 Freight travel activity

Figure 11 presents the freight transportation volume (ton/day) by trip distance in 2008 according to the transportation and logistics survey completed in 2009 for VITRANSS 2, which has five components: logistics survey, trucking company survey, bus company survey, inland waterway transport operator survey, and shipping company survey. It is observed that road freight transport is mostly via short-distance trips (i.e. less than 100km), comprising 73% of the total road freight

movement. An important observation is that about 87% of the total freight movements are characterised by short-distance trips (i.e. less than 200km). According to the World Bank (2011), “The highly skewed distribution is driven by the two dominant internal trade patterns centred on Hanoi and HCMC.”A spatially referenced route-specific trucking survey was commissioned by the World Bank in 2010, which further confirmed the concentration of freight movements in Hanoi and HCMC (World Bank, 2011). Moreover, the carrying capacity of an average cargo vessel fleet in Vietnam is approximately 100 deadweight tons; that of Western Europe is approximately 2,500 deadweight tons (Blancas & El-Hifnawi, 2013).

800,000 Road 700,000 Rail

Inland waterway 600,000 Coastal 500,000 Air 400,000 Total

300,000

200,000

100,000

0 Freight transportation volume (ton/day) Freight(ton/day) transportationvolume

Trip length (km) Figure 11: Freight transportation volume (ton/day) by trip distance, 2008 Source: VITRANSS 2, 2010

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Figure 12 illustrates the national TKT trend from 1995 to 2011. According to the BAU scenario

estimated by a report undertaken by the World Bank (2013), TKT in Vietnam is anticipated to reach

637.5 billion in 2040, seven times higher than the 2010 figure of 91.4 billion TKT.

Figure 12: Volume of freight traffic by type of transport Source: Statistical Yearbook 2014 (GSO)

2.4.2 Modal Share Modal share (S) influences transportation energy use and GHG emissions because different travel modes have different emission rates. For example, human-powered transportation produces no direct emissions. There are also multiple factors which play important roles in modal share. For example, income influences people’s value of time and demand for speed, comfort, and privacy. This results in vehicle ownership, determined by the availability of and infrastructure for different modes. Moreover, availability and reliability of public transit systems can affect modal attractiveness (Zegras, 2007). Therefore, structural changes of transportation infrastructure will impact energy consumption and GHG emissions of country significantly.

 Number of vehicles The data on the total number of car and motorcycles registered is from the Road-Rail Traffic Police of the Ministry of Public Security. There is no data on in-use number of motorcycles. Further, because motorcycles are only required to register once, it is difficult to account for number of retired motorcycles. For cars, buses and trucks, data is from Vietnam Register (through their Monthly Magazine “Total Vehicle Population in the Country”).

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In 2010, the total number of vehicles in the country reached 31.3 million vehicles and then

continuously increased to 38.6 million vehicles in 2012 (Vietnam Register). Between 2000 and 2010,

the total number of vehicles in Vietnam increased at an average rate of 17.7% per year (Clean Air Asia, 2012) while the average rate for 2010-2012 is 11.1% per year (Vietnam Register, 2013). The

trend of vehicle growth for about two decades is illustrated in Annex 8 and 9, showing the vehicle fleet is dominated by motorcycles (95%).

The growth in the number of motorcycles in Hanoi and HCMC is provided in Figure 13. The figure shows the gap between Hanoi and HCMC in terms of motorcycle population has been decreasing

since 2008, suggesting that Hanoi experienced a sharper increase in growth rate of this mode of transport.

7000 6,318 Hanoi HCMC

6000 5,558 5,171 4,862 5000 4,367 4,278 4000 3186 3,361 3000

2000 1750 1385 1004 Motorcycle (x1,000) number Motorcycle 786 1000 499

Figure 13: Number of in-use motorcycles in Hanoi and Ho Chi Minh City Source: Vietnam Register, 2015

The World Bank report Winds of Change (2010) projects that passenger cars will grow more rapidly than 2 wheelers, if nothing is done to reverse the motorisation process and to implement mass transportation programs (Wang, Berrah, Mathur, & Vinuya, 2010). While Vietnam’s motorcycle market is among the largest globally, the market for two-wheeled motorcycles has reportedly saturated in recent years as supply exceeds demand. According to Vietnam Register, the number of registered motorcycles dropped to 2.92 million units last year compared to 3.27 million units in 2013, 3.28 million units in 2012 and 3.67 million units in 201110. Sales continue to slow down despite the drop in prices. Nevertheless, businesses are determined to continue production and use Vietnam as an export base, and are expected to “turn Vietnam into a motorbike manufacturing centre in Asia” (Thanh Nien News, 2014).

10 http://www.vietnambreakingnews.com/2015/02/number-of-registered-bikes-exceeds-2020-vision/ 23

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 Modal share of passengers

Modal share can be regarded as indicator helping to assess sustainability of the transport system. For sustainable transport and climate change mitigation, it is preferred to have a high share of public transport modes as well as non-motorised transport rather than private vehicles. At the national

level, the modal share of vehicles has been reported by Vietnam Register however there is no official data on the modal share of passengers. These are only studied and reported by international

organizations in some big cities in certain years as this is a costly process (Typically these data are reported through travel surveys which are conducted for long-term strategic planning purpose) and there is lack of recognition of the importance of this data.

The mode share (excluding walking) in Hanoi based on the 2003 household interview survey introduced earlier in Section 2.5 is illustrated in Figure 14. Bicycles and motorcycles comprise a significant share of the mode split with an average of 90% for inner-city, suburb, and entire city. Public passenger transport including buses and taxis comprise a minimal share in the mode split (less than 10%).

100% Pedicab 90% Bicycle 80% 70% Motorcycle 60% Car 50% Taxi 40% Bus (of company, school, office) 30% Public bus 20% Inter-provincial passenger bus

Modal Split (excluding Split walking) Modal 10% Others 0% Inner-city Suburb Whole City Figure 14: Mode share in Hanoi, 2003 Source: Transport Development and Strategy Institute, 2003

The same is observed in Ho Chi Minh City where motorcycles remain as the primary mean of mobility (Figure 15). About 90% of the trips are via motorcycle or bicycle for all trip purpose (e.g. school, home) except for business.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

To Work

To School

Private

Bicycle Motorcycle To Home Car

Bus

Business Paratransit Others

0% 20% 40% 60% 80% 100%

Figure 15: Mode share by trip purpose in Ho Chi Minh City, 2004 Source: JICA, HOUTRANS, 2004

During the period 1995-2005, both cities of Hanoi and Ho Chi Minh saw a shift from walking and bicycles to motorcycles, and a shift from motorcycles to cars. Additionally, the results from The Study on Urban Transport Master Plan and Feasibility Study in Ho Chi Minh Metropolitan Area (HOUTRANS) and the Hanoi Integrated Development and Environment Programme (HAIDEP) completed in 2004 and 2007, respectively, show a further decline in the shares of bicycles in both cities, as well as of motorcycles, and a growth in the shares of cars and taxis. As the data from these studies is out of date and modal split might be changing quickly, especially the non-motorised share and also the improvement of the public transport infrastructure like MRT, BRT11; the applicability of the above data for the present time should be considered. Additionally, Hanoi has set a target of increasing the ridership of public transport to over 40% of demand as presented in Hanoi Urban Transport Master Plan (2013). Recent estimates also show that about 10% of the trips are made by public transport (TDSI, 2015); in 2005, its share was about 6%, representing a slight increase from its share of 3% in 1995 (The Motorbike JWG, 2007). In a detailed modelling study covering Hanoi and its satellite towns, Nguyen, N.Q. et al. (2013) show that motorcycles provide far better accessibility to jobs compared to public transport. At the national level, there is no comprehensive study on modal split for passenger transport. Normally, these data are surveyed and presented in the cities and province’s transport master plan and are not reported annually.

11 Tuan & Mateo-Babiano (2013) carried out a survey among 400 HCMC inhabitants in 2012, in which the share of bus transport was 12% and bicycle 8%, with the remainder predominantly by motorcycle. They find that motorcycle taxis provide a flexible alternative transport mode for the urban poor and could contribute to low-carbon transport as a convenient access mode to public transport in the future. 25

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

 Modal share of freight

The VITRANSS 2 provides insight in the modal share of freight transportation. As illustrated in Table 5, freight movement is predominantly through roads and inland waterways. Together, roads and inland waterways comprise 94% of the total freight movement. Table 5 presents the mode

shares of interprovincial freight transport in 2008 based on VITRANSS 2 survey results. It is observed that a significant share of the manufactured goods (88%) is transported by roads, while the

most of heavy raw materials, such as construction materials (73%) and coal (79%), are transported via inland waterways (World Bank, 2011). Rail has a fairly limited role in freight movement in the country.

For long distance trips, the World Bank report released in 2014, Efficient Logistics: A Key to Vietnam’s

Competitiveness, likewise observes that Vietnam relies heavily on trucking and less on less expensive rail and inland waterway transport despite its geography, with goods moving from Ho Chi Minh City or Mekong Delta to distribution facilities in central and northern regions.

Table 5: Modal shares by commodity (ton/day), 2008 Inland Coastal Commodity Road Rail Air Total waterway waterway 1. Rice 78,969 204 36,109 4,261 0 119,543 2. Sugarcane/Sugar 3,682 0 4,847 88 0 8,617 3. Wood 11,499 523 11,683 914 0 24,619 4. Steel 41,965 2,156 1,015 764 0 45,900 5. Construction Materials 129,219 8,213 370,787 1,914 0 510,133 6. Cement 38,965 3,810 64,387 13,021 0 120,183 7. Fertiliser 8,813 2,939 28,678 1,168 0 41,598 8. Coal 12,106 2,377 92,549 10,092 0 117,124 9. Petroleum 33,374 404 5,018 8,234 0 47,030 10. Industrial Crops 5,628 0 2,415 0 0 8,043 11. Manufactured Goods 171,895 4,895 3,916 13,524 251 194,481 12. Fishery Products 7,186 0 12,203 0 0 19,389 13. Animal Meat & Others 61,578 0 9,373 4,118 0 75,069 Total Tonnage Transported 604,879 25,521 642,980 58,098 251 1,331,729 (ton/day) Modal Share (%,ton) 45.4 1.9 48.3 4.4 0 100 Average Trip Length(km) 143 400 112 1,161 1,404 178 Modal Share (%, ton-km) 36.6 4.3 30.5 28.5 0.1 100.0 Source: World Bank, 2011

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As discussed in World Bank (2011), domestic freight transportation demand up to 2030 was

projected by the VITRANSS 2 study based on various assumptions and model estimations12. Table 6

summarises the information in Table 5 and provides the projection of modal shares of freight transportation in 2030. The results indicate that, in 2030, road and inland waterways will still

comprise a large proportion of the freight movement. The modal share of inland waterways is projected to decrease from 48.3% in 2008 to 35.3% in 2030. In contrast, the modal shares of both rail and road are projected to increase in the same period. In terms of tonnage share, freight by inland waterway accounted for the largest total tonnage share among all modes in 2008 (48%), but will decline in 2030 (35%) and will be surpassed by the road sector (57%).

In 2008, while freight demand by inland waterways is larger than by road, the distance made by inland waterway transport is shorter (112 km) than by road (143 km). Short-distance freight movement via inland waterways can also be attributed to topographical constraints. World Bank (2011) observes that the connected waterways have limited vertical navigational clearance under the bridges, and have sharp curves, Moreover, Blancas & El-Hifnawi (2013) observes that the waterway network “offers limited and largely east-west geographical coverage,” thereby limiting the trip length of this freight mode. Additionally, as presented earlier in Section 2.5, Table 6 shows that freight demand by inland waterway will continue to grow, but not as much as railway and road.

Nevertheless, recognising the potential of freight via maritime transport, Blancas & El-Hifnawi (2013) recommends that multi-modal linkages between rivers, ports and highways be improved, and that cargo-carrying capacity of the highest-priority inland waterway transport corridor be expanded.

Table 6: Projection of modal shares of freight transportation, 2008 and 2030 Inland Coastal Road Rail Air Total waterway waterway Volume 2008 604.9 25.5 643.0 58.1 0.3 1351.8 transported 2132.7 155.1 1317.0 125.8 1.0 3731.6 (‘000 ton/day) 2030 Modal share 2008 45.4 1.9 48.3 4.4 0.0 100 (%, ton) 2030 57.2 4.2 35.3 3.4 0.0 100 Modal share 2008 36.6 4.3 30.5 28.5 0.1 100 (%, ton-km) 2030 53.0 9.7 19.9 17.2 0.2 100 Source: VITRANSS 2, 201013

12 “Projecting freight transportation demand starts with estimating production and consumption by province and by commodity group. The provincial-level surplus or deficit is then used as a source of freight traffic. Socioeconomic growth trends and planned projects are also taken into account. After forecasting future origin-destination distribution using the Fratar method, the modal split of freight traffic demand was estimated using differences in generalized cost of each transport mode.” Source: VITRANSS2 cited in World Bank, 2011. 13 http://www.citiesalliance.org/sites/citiesalliance.org/files/CAFiles/Projects/Final_669160ESW0P1130Review000Full0report.pdf 27

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2.4.3 Energy Intensity

Energy or fuel intensity (I) is the consumption of fuel per amount of work done, i.e. passengers or

goods moved. It is affected by e.g. vehicle technology, age, engine type, and driving cycles and driving conditions (Schipper, 2007).

 Fuel economy of vehicles

Fuel economy is measured in terms of average vehicle-distance travelled per unit of fuel used (e.g. km/litre), or of the volume of fuel used per vehicle-distance travelled (e.g. litre/km). In developed countries such as U.S., Japan and Korea and other European countries, fuel economy data of new

vehicles can be obtained from fuel economy or emission standard program where all new models of vehicles are tested with appropriate standard driving cycles to pass a minimum standard prior to obtaining certification for selling in the market. In Vietnam, type approval procedures require new vehicle to meet certain emission standards. All manufacturers and importers of new vehicles need to

provide the necessary documents with pollutant emissions (included CO2) and fuel consumption of the vehicle type to Vietnam Register before type approval certificate is issued. To examine the real fuel consumption, a study was conducted in Hanoi to collect some data through an on-road vehicle testing, fuel consumption of several types of motorcycles and LDVs was provided in Table 12 and Table 13. As of 2015, Vietnam has a Euro 2 and sulphur levels regulation of 500 ppm in both gasoline and diesel under Tieu chuan Vietnam specification fuel (TCVN 5689:2005 for diesel and TCVN 6776:2005 for gasoline). No mandatory fuel economy standards have been implemented yet (see section 3.2).

 Vehicle speed Fuel intensity likewise depends on speed, driving behaviour, and vehicle age. The 2003 TDSI study in Hanoi, estimating journey speed from travel time and trip distance, shows that buses, motorcycles and bicycles run no faster than 20 km/hr in Hanoi (Table 7). In another review years later (World Bank, 2013) the average driving speed in an urban driving conditions in Vietnam remains no more 20 km/hr. for cars, trucks, buses, and motorcycles (Table 8). The average trip speed of trucks (trip distance divided by trip time) is 30-35 km/hr. (World Bank, 2011). Table 7: Average journey speed by mode in Hanoi, 2003 Vehicle type Average journey speed (km/h) Bus 11.4 Motorcycle 17.8 Bicycle 11.6 Source: Transport Development and Strategy Institute, 2003

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On-road vehicles’ average speed, 2010

Table 8:

Average journey speed (km/h)

Vehicle type Urban Rural Highway Car, SUV, MPV 20 60 75

LDV 20 60 65 HDV – Truck 18 40 45 HDV – Urban 37 37

14 bus HDV – Coach 18 50 65

Motorcycle 20 35 - Source: World Bank, 2013

 Vehicle age Vietnam Register reports that automobiles over 15 years of age accounted for a little more than 13%, while 69.6% are less than 10 years old (Table 9) (Duc, 2009). Trucks, on average, are 16.6 years of age (World Bank, 2011). About a decade ago, about 80% of the public buses in Hanoi were over 10 years old, and only about 20% were under 5 years; similarly, most of the buses in Ho Chi Minh City were 25 years old on average (Vietnam Register, 2002).14 Subsequently, the Centre for Environmental Monitoring (CEM) of the Vietnam Environment Administration (VEA) gives an overview of motorcycle and LDV distribution by age in Hanoi (Figure 16) when it launched a two- year emission-monitoring program which developed the first emission factors and emission inventories for motorcycles and LDVs considering the local driving characteristics in Hanoi (Tung, Tong, Hung, & Anh, 2011; Tong, Tung, Hung, & Nguyen, 2011). The survey shows that LDVs are generally 3-7 years of age and only 6% are greater than 10 years, while 65% of motorcycles in Hanoi are 3 years of age and less, and only 10% are more than 10 years old. Annex 13 summarises the driving cycle for motorcycle and LDV in Hanoi. Motorcycles generally have shorter use time than automobiles (Manh, Thuy, & Duy, 2011). Ho Chi Minh City has relatively similar values: majority of its motorcycles are less than 3 years old (Figure 17).

Table 9: Estimated age of motor vehicles in circulation, 2009 Classification Quantity Percentage (%) Total of automobiles in circulation 1,092,614 100 Age of automobiles less than 10 years 760,703 69.6 Age of automobiles from 10 to 15 years 141,674 12.97 Age of automobiles from 15 to 20 years 143,478 13.13 Age of automobiles more than 20 years 46,759 0.43 Note: excludes motorcycles Source: Vietnam Register

14 This is from the Regional Technical Assistance project (RETA 5937) initiated by Asian Development Bank to support some countries to develop action plans to reduce vehicle emissions. The output, “Integrated Action Plan to Reduce Vehicle Emissions in Viet Nam,” was formulated by Multi-sectoral Action Plan Group organised by Vietnam Register with representatives from relevant ministries 29

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

120%

100%

80%

60%

40%

20%

0% <3 years 3-7 years 7-10 years >10 years

Motorcycles LDVs

Figure 16: Distribution by age of motorcycle and LDV in Hanoi Source: Tong, Tung, Hung, & Anh, 2011

Figure 17: Motorcycle distribution by age in Ho Chi Minh City Source: Dzung & Thang, 2011

According to Vietnam Register, of the 1.09 million vehicles (excluding motorcycles) in Vietnam in 2009, 69.6% are less than 10 years old, 12.97% are between 10 to 15 years old, 13.13% are from 15 to 20 years old, and 0.43% are over 20 years old. On the other hand, 26.16% of the motorcycles in circulation are 10 years old and above (Figure 18). This is based on the Motorcycle Emission Control in Major Cities Program (2007).

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

16.85%

26.16% >10 years

9 years 8 years

7 years 12.41% 6 years 5 years

3.85% 4 years 2.32% 3 years 6.87%

2.39% 2 years 3.89% 1 years

11.90% 13.35% Figure 18: Distribution of age of motorcycles Source: Motorcycle Emission Control in Major Cities Program. Hanoi, Vietnam. 6 March 2007

 Vehicle and fuel technology There is limited information on the fuel split of vehicles in the country, but there is information for Hanoi and HCMC. An estimate on gasoline and diesel fuel split by mode in Hanoi in 2005 is provided in Table 10. It indicates that passenger cars mostly rely on gasoline fuel while trucks rely more on diesel (Schipper et al., 2008). Annex 12 presents the fuel split for motorcycles and LDVs in Hanoi, and their classification according to engine capacity, and indicates that most motorcycles and

LDVs rely on gasoline.

Table 10: Estimated gasoline/diesel fuel split by mode in Hanoi, 2005 Fuel type Passenger Cars Bus Truck Gasoline 92% 50% 32% Diesel 8% 50% 68% Source: Estimated by Tuan Le Anh. 2008. Cited in Schipper et al., 2008. In HCMC, similar studies on emissions estimation have been developed which also included survey to characterise the vehicle fleet characteristics in the city (Ho & Clappier, 2011). Results also show that primary fuel used by motorcycles is gasoline. In addition, their survey results found that, while most of the motorcycles in the city are not very old, their pollution share is significant. Ho & Clappier (2011) explain that this is because the motorcycles are manufactured by low standard technology (Euro 1 or pre-Euro) to keep the price low.

 Fuel pricing and infrastructure Fuel pricing holds a key role in climate change and energy efficiency strategies, mainly for two reasons: firstly, fuel subsidies or taxation can be either a financial burden or a source of revenues for national governments, which in the latter case can notably be used to finance costly urban transport projects and policies, and; secondly, taxation and subsidies can either encourage or discourage

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector certain transport practices of the people and businesses. High fuel prices can indeed avoid or delay a

shift to private vehicle users from non-motorised transport modes or mass transportation systems.

Vietnam is one of the most important oil producers in Southeast Asia. It ranks third, following China and India, in terms of natural oil reserves for the Asia-Pacific region. It is also a significant consumer as a consequence of its economic development (with an overall yearly GDP of 7.2% between 2002 and 2012). The U.S. Energy Information Administration (EIA) (2012) likewise

reports: “Vietnam held 4.4 billion barrels of proven oil reserves as of January 2012, compared to 0.6 billion barrels of oil in 2011. This increase is in part a result of Vietnam's efforts to intensify exploration and development of its offshore fields. Ongoing exploration activities could increase this figure in the future, as Vietnam's waters remain relatively underexplored.” Nonetheless, oil consumption in this country surpassed production in 2011. The EIA report further explains: “Vietnam's oil sector is dominated by the state-owned Vietnam Oil & Gas Corporation (PetroVietnam), essentially both the operator and regulator in the industry. PetroVietnam is under the authority of the Ministry of Industry and Trade (MOIT). All oil production in the country is carried out by PetroVietnam's upstream subsidiary, PetroVietnam Exploration and Production (PVEP), or through joint-ventures or production sharing contracts, in which the national oil company (NOC) has at least a 20% equity interest. PetroVietnam is also involved in Vietnam's downstream oil sector through various subsidiaries, such as Petechim and PetroVietnam Oil Processing and Distribution Company (PV Oil). Petrolimex is the primary company charged with importing and distributing petroleum products in Vietnam and accounts for about 60% of the country's total petroleum distribution market.” Military Petroleum Corporation and Comeco Company are the two most important secondary distributors in the country. The report continues, “There are plans to sell equity stakes in Petrolimex and provide greater competition for the domestic market. So far, only 3% of the company's shares were sold off in a partial privatisation to Vietnamese buyers” (EIA, 2012).

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Figure 19: Vietnam oil production and consumption, 1990-2010 Source: Energy Information Administration, 2012. Country Analysis Briefs: Vietnam

Prices of ‘super gasoline’ and diesel in Vietnam have experienced an overall increase since 2005, as indicated in the graphs in Annex 11. This is notably due to the rise in global prices and the inflation in the country. The same report indicated that diesel fuel notably benefits from some government subsidies, contrary to gasoline which is taxed. As of December 2014, the gasoline was USD 1.03/litre while diesel was USD 0.92/litre.

The Government of Vietnam has adopted a model of active fuel price regulation following the example of the People’s Republic of China. The state systematically adjusts prices as explained by EIA (2012): “Currently, Vietnam maintains wholesale and retail oil prices lower than international oil market prices to sustain a growing economy, keep inflation from rising, and protect consumers, resulting in revenue losses for oil distributors. Vietnam's Ministry of Finance attempts to manage these losses through tools such as import tax and tariff reductions and the Fuel Price Stabilization Fund, which allows distributors to withdraw cash. In times of high crude oil prices, though, the fund's resources tend to diminish. Vietnam intends to gradually roll back fuel subsidies in the oil and natural gas sector and use market-based pricing in order to alleviate state budget strains in times of high international oil prices. Limited reform under Decree 84 (2009) allows fuel retailers to increase oil prices by 7 % when international prices fluctuate by the same rate within a 30-day period, but the government typically tries to maintain lower prices for consumers and uses this measure as a last resort to reverse distributors' revenue losses. When crude oil prices escalated in 2010, Vietnam reduced oil product import tariffs several times until early 2012, when the government slashed duties on gasoline, jet fuel, and diesel to zero. Also, the government resorted to boosting retail oil product prices by a total of 34% in 2011, and by an additional 12% in March 2012.” 33

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

 Logistics performance

The overall score of World Bank’s Logistics Performance Index (LPI) reflects the perceptions of a country's logistics based on efficiency of customs clearance process, quality of trade- and transport- related infrastructure, ease of arranging competitively priced shipments, quality of logistics services,

ability to track and trace consignments, and frequency with which shipments reach the consignee within the scheduled time. The index ranges from 1 to 5, with a higher score representing better

performance. Based on the surveys conducted by the World Bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics, Vietnam’s LPI is 3.15 in 2014, and the country is among the over performing non-high-income

economies (Table 11).

Table 11: Logistics performance index for Vietnam 2007 2010 2012 2014 Logistics Performance Index 2.89 2.96 3.00 3.15 Source: World Bank, 2014. Connecting to Compete: Trade Logistics in the Global Economy

2.4.4 Fuel Emission Factors Fuel choice (F) influences to GHG concentration in exhaust differ by fuel type. Natural gas has different GHG emissions than diesel, gasoline, and so on. In the case of electricity-powered transport electric vehicles, GHG emissions depend on the fuel sources, combustion technologies, and transmission and distribution losses.

 Emission factors

15 Emission factors are important parameters in estimating emissions or the amount of CO2

generated per unit activity. It can be expressed as gCO2e/km. Emission factors vary between countries due to different vehicle technologies, fuel characteristics, driving characteristics, and so on. To have reasonable emission estimates, measurements need to be conducted for a sample size that is representative of the vehicle fleet following a typical local driving cycle which represents the traffic conditions a vehicle encounters (Schipper, et al., 2008)

15 An emissions factor is a measure of the rate that pollutants are emitted relative to units of activity and vary with vehicle technology, vehicle maintenance and tuning, driver behaviour, temperature, etc. This can be measured in multiple ways: in units of grams emitted per kilometre travelled by the vehicle (g/veh km), per passenger km (g/pass km), or per litre of fuel consumed (g/litre). Source: Schipper et al., 2008. 34

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Schipper et al. (2008) assessed the emission reductions from two alternative transport policies. They

used the European driving cycle proxies—ECE-R40 for motorcycles, New European Driving Cycle 16 (NEDC) for cars, and test cycle ECE-R49 for trucks —as well as a composite or an average emission factor to account for each kind of vehicle. However, a recent study which developed

driving cycles for Hanoi (Tong et al., 2011) found that these exhibit different characteristics when compared with the European NEDC cycle, primarily because of the differences between a modal cycle (NEDC) and a transient cycle (CEMDC and CECDC).

As previously discussed in Section 2.4.3, the CEM of the emissions-monitoring program which developed the first emission factors and emission inventories for motorcycles and LDVs considers

the local driving characteristics in Hanoi (Tung et al., 2011; Tong et al., 2011). Annex 15 lists the 12 representative test vehicles selected for emissions measurements with their specifications and VKT. These were selected because it was found that, firstly, most of the motorcycles are of three-engine capacity classes, 70–100 cc, 100–125 cc and over 125 cc, and aged mainly within 3 classes: 1–3 years, 3–7 years and over 7 years. Secondly, most of the LDVs are of four categories from 1300 cc to 2500 cc, and mostly aged smaller than 3 years or 3–7 years (Tung et al., 2011). Detailed description on the methodology applied is available in the document Development of Emission Factors and Emission Inventories for Motorcycles and Light Duty Vehicles in the Urban Region in Vietnam (Tung et al., 2011). Table 12 and Table 13 provide the emission factors and fuel consumption for motorcycles and LDVs in Hanoi. In Table 12, the older vehicles (3-7 years and >7 years) have lower emissions (e.g. CO2 and FC) than the first class (1-3 years). The reason is these are manufactured by different brands of motorcycle and normally, the quality of the engines is different, for example, Dream II and Future is better than the rest.

Table 12: Fuel consumption and emission factors of motorcycles for Hanoi 70-100 cc 100-125 cc 125-150 cc Emission >7 years 3-7 years 1-3 years 3-7 years >7 years 1-3 years 3-7 years >7 years factors (Dream (Wave RS) (Jupiter) (Smash) (Future) (Lead) (Skye) (Future) II) CO [g/km] 10.02 12.42 13.48 8.86 16.93 6.76 15.69 8.87 HC [g/km] 0.8 0.98 1.17 0.79 1.28 0.5 0.73 2.77 NOx [g/km] 0.2 0.05 0.09 0.13 0.06 0.11 0.11 0.05 CO2 [g/km] 29.24 22.95 31.73 26.01 22.1 50.26 51.03 26.51 FC [L/100 km] 2.07 1.99 2.47 1.85 2.3 2.72 3.4 2.15 Source: Tung, Tong, Hung, & Anh, 2011

16 The ECE (Economic Commission for Europe) test cycle is a European emissions test cycle performed on a chassis dynamometer for light-duty vehicles “devised to represent city driving conditions, e.g. in Paris or Rome. It is characterized by low vehicle speed, low engine load, and low exhaust gas temperature” (Diesel Net, 2004). ECER40 stands for ECE Regulation 40—Emission of gaseous pollutants of motorcycles. ECE49 is an older test standard for heavy-duty trucks that the European Commission adopted in 1988 under the Euro II standards. In October 2000 the Euro III standard was adopted, and the R49 cycle was replaced by the European Stationary Cycle schedule (Diesel Net, 2004). The NEDC (New European Driving Cycle) is a new test cycle adopted in 2000 that requires cold-start emissions testing. Emission measurements begin immediately after the engine is started (t=0s), as opposed to the ECE standard, which allows a 40s idling period before measurements begin (Diesel Net, 2004). This new test was adopted to better incorporate HC and CO emissions, most of which are generated during the warm-up idling period. Source: Schipper et al., 2008. 35

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Fuel consumption and emission factors of LDVs for Hanoi

Table 13:

Emission 1800 cc 2500 cc (Ford 2000 cc 2500 cc

Average factors (Ford Laser) Ranger - Diesel) (Innova) (Prado) CO [g/km] 0.99 0.92 2.4 4.52 2.21

HC [g/km] 0.13 0.18 0.13 0.59 0.26 NOx [g/km] 0.25 1.84 0.13 1.97 1.05 CO2 [g/km] 234.07 283.88 216.88 293.92 257.19

PM [g/km] – 0.3 – – 0.3 FC [L/100 km] 10.2 12.36 9.55 13.09 11.3

Source: Tung, Tong, Hung, & Anh, 2011

In addition Tuan et al. (2012) developed the Hanoi Motorcycle Driving Cycle (HMDC) driving cycle for motorcycles to represent the actual driving conditions in Hanoi. Emission factors obtained from

HMDC are comparable with those from ECE R40 in CO, CO2, THC emissions which are quite similar. Detailed description on the methodology of HDMC Construction is available in the document Measurements of emission factors and fuel consumption for motorcycles on a chassis dynamometer based on a localised driving cycle (Tuan et al., 2012). Exhaust emission factors, fuel consumption for the test motorcycles obtained from HMDC and ECE-R40 driving cycles together with the combined average of the emission factors of the two driving cycles are shown in Table 14.

Table 14: Averaged Emission Factors and Fuel Consumption Obtained from Motorcycles Tested on Chassis Dynamometer Using HMDC and ECE-R40 Driving Cycles Emission Factors HMDC ECE-R40 HMDC/ECE THC (g/km) 1.017±0.300 1.186±0.225 0.858 NOx (g/km) 0.180±0.079 0.108±0.029 1.668 CO (g/km) 12.592±2.565 12.906±2.447 0.976 CO2 (g/km) 32.478±6.865 31.321±5.454 1.037 Fuel Consumption (l/100km) 2.360±0.277 2.345±0.178 1.006 Source: Tuan et al, 2012

2.5 Data Availability and Quality Relevant transport-related data was reviewed using the ASIF framework in Section 2.4. This section summarises the key challenges in collating transport-related data for estimating emissions, particularly data availability, accessibility, and reliability, and identifies the institutions responsible for data collection. In Vietnam, data and statistics of several sectors including the transport sector has been relatively well-collected. One statistical data source is the Statistical Yearbook, which is published yearly by the General Statistics Office and also accessible via its website17. GSO is a government body which generates and issues the official data at the national level regarding land use, population and labour,

17 http://www.gso.gov.vn 36

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector state budget, agriculture, industry, transport (PKT and TKT for road, rail, water and air transport),

and others. It also provides data on provinces on the same topics. Provincial Statistic Offices (PSOs)

issue data on local economic sectors by either statistical year books, and in some provinces/cities via websites.

The following list presents major data sources with regard to land transport (among many other information generated by each organisation):

• Ministry of Transport (MOT): status, strategies and policies on road/bridge network, vehicle fleet, roadmap for tightening emission standards. The Vietnam Inland Waterways

Administration, the Vietnam Railways Authority (VNRA) and the Directorate for Roads of Vietnam (DRVN) are part of the organisations assisting the MOT in performing state

management functions. • Vietnam Register (VR): approved types of new vehicles imported to and manufactured in Vietnam, vehicle inspection network, inspected vehicle volume and failure rate, enforcement of emission standards. • National Traffic Safety Committee (NTSC): Vehicle fleet, traffic accident and its fatalities/injuries • Ministry of Industry and Trade (MOIT): automobiles and motorcycles industries, (technologies, production, sales and prices), energy industry and trading (fuel quality, refineries, import/export, sales and prices), biofuel development.

• Traffic Police (national and provincial levels): registered vehicle fleet • Ministry of Science and Technology (MOST): development and issuance of fuel quality and vehicle emission standards • Ministry of Natural Resources and Environment (MONRE): air quality monitoring, air pollution control, inspection and enforcement of air quality standards • Provincial Transport Department (PTD): inspected vehicles and failure rate, vehicle fleet at local level In general, various types of data can be retrieved from several organisations such as MOT, NTSC, Traffic Police and PTD. However, data can be relatively difficult to access, except for Statistical Yearbook, and there is no “consistent format for data” (Binh, 2008). Table 15 enumerates several challenges in data collection in Vietnam. Currently, the government is the main source of data. The private sector, NGOs and industry associations (e.g. Vietnam Automobile Manufacturers' Association) provide information on vehicle production and sales. International donors and research institutes likewise collect data and carry out surveys and studies for various projects. While many data are collected annually and/or monthly, the data needed for emissions estimation are generally very limited as most of them are only collected whenever a project is implemented. For the data that are available, their level of aggregation is too high which may not be useful for transport planning at

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

the sub-national level. These challenges in collecting transport-related data are present across Asia, as

observed by Fabian and Patdu (2011) in Annex 16.

Table 15: Challenges in availability, reliability, and quality of data that are relevant for emissions estimation in the Vietnam

• Transport activity data (PKT and TKT) is annually monitored and reported by GSO through the Statistical Yearbook. The report is based on surveys conducted by GSO and the reporting system of MOT. The challenge is the consistency between the two type of monitoring systems, GSO and

MOT while limited capacity and human resources for data collection are also noted... Some other activity data can be found in reports of technical assistance projects funded by development

Activity organisations, transportation planning studies, fleet records, and local studies. Most efforts in upgrading available data are ad hoc and project-dependent. Because data collection is dependent on projects, some activity data are only available for certain years and not in time-series. • Information on mobility is not included in regular national household surveys conducted by GSO.

• Data on the total number of cars and motorcycles registered is from the Road-Rail Traffic Police (C67) of the Ministry of Public Security. Vietnam Register under MOT likewise collects data on car and motorcycle ownership (Binh, 2008). Further, because motorcycles are only required to

register once, it is difficult to account for number of retired motorcycles. For cars, buses and trucks, data is from Vietnam Register (through their Monthly Magazine “Total Vehicle Population in the Country”). • Comprehensive vehicle classifications by fuel type (especially for vehicles running on alternative Structure fuels and on electricity) and by technology type (which is important for air pollutant emissions estimations) have limited availability. This is not provided in the monthly magazine published by Vietnam Register. This can be estimated using sales statistics from oil companies, market research data (e.g. Segment Y Ltd.) and local studies.

• Information on average speed and fuel efficiency is limited. Some information is available in reports of technical assistance projects funded by development organisations, transportation planning studies, vehicle manufacturer’s statistics, transport company records, fleet operators’

Intensity surveys, and local studies.

• Locally derived emission factors and driving cycles are outdated (T.A. Duong, personal communication, April, 30, 2014). There are some local studies to develop emission factors for two- Fuel wheelers, LDVs and HDVs for Hanoi and HCMC. Local driving cycle for Hanoi is also available.

The collection of transport-related data is also fragmented. Several government agencies collect data only according to their needs. While this in itself is not problematic, the lack of integration among agencies has resulted into datasets with different terminologies, classification, and reporting. The private sector also collects transport related data. While private companies have traditionally held on data they have collected or generated, they are presently becoming more receptive to sharing information especially for collaborative work.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

In summary, the table below shows the data availability and the possibility of collecting these data

parameters in Vietnam.

Table 16: Available emissions-relevant data in Vietnam

Parameter/ Unit Availability Main source Quality Remarks Indicator

Activity

Passenger Number of Annual data General Statistics Good transport passenger by (million passenger) Office Of Vietnam

trip railway, road, from 1995 (GSO) waterway and onwards aviation transport

Freight Number of cargo Annual data GSO Good transport by railway, road, (thousand ton) trips inland waterway, from 1995 maritime and onwards aviation transport

PKT Passenger Annual data GSO Good

kilometre (million passenger travelled by kilometre) from railway, road, 1995 onwards waterway and aviation transport

TKT Tonne kilometre Annual data GSO travelled by (million ton railway, road, kilometre) from waterway and 1995 onwards aviation transport

Structure

Modal share Number of Annual data GSO Good of vehicles vehicles (car, (VKM) truck, special and other cars, motorcycle)

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Parameter/

Unit Availability Main source Quality Remarks Indicator

Modal share Percentage of Not frequently, International Good Local of passenger passenger only in some organisation studies government

(PKM) journeys or trips certain years by the main mode of

transport

Intensity

In-use Detailed vehicle Annual data Vietnam Register Good Vietnam vehicle registration data (VR) Register also per vehicle-fuel has type disaggregation to different categories of engine sizes, for cars and 2 wheelers

Energy Fuel Ministry of TVCN efficiency consumption Transport, Ministry 9854:2013 and (vehicle) (l/100 km) non- of Science and TCVN mandatory Technology 7356:2014 standards for passenger cars, motorcycles and mopeds.

Energy efficiency (pkm or tkm)

Emission factor

CO2 g/km (emission Studies (Centre for Some types of factor for Hanoi) Environmental motorcycles Monitoring (CEM) and LDVs of the Vietnam Environment Administration )

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Parameter/

Unit Availability Main source Quality Remarks Indicator

Other g/km (emission Studies (CEM) Some types of emissions factor for Hanoi) motorcycles

and LDVs

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

3 Policies and Institutions

Over the last decade, the Government of Vietnam has acknowledged that their country is one of the most vulnerable to the impacts of climate change. Concerns about food security, public health, and environmental sustainability are becoming more and more mainstream for Vietnam’s development

agenda in the recent years. Increasing awareness cultivated by international partnerships and organisations has spurred action for the Vietnam government to take part in the global effort for climate change impact mitigation.

3.1 Institutional Structure and Stakeholders

The Ministry of Transport (MOT) has a sole responsibility to develop transport policy, although the implementation can be done at inter-ministerial levels. The process of developing transport policies follows the process of policy and plan making. The policy can be drawn from policy-makers, as well as comprehensive consideration and policy recommendation through studies and reports. Vietnam’s administrative structure is divided into four levels of government: (1) national level, (2) province and city, (3) rural district, urban district and town, and (4) ward/precinct, town districts, communes, as well as village and hamlet in rural areas. The national level includes the National Assembly, the President, the Government, the People’s Supreme Court and the Supreme People’s Procuracy. Each level of state administration at the local government level (i.e., province, district and commune) has a corresponding People’s Council and People’s Committee, with the People’s Council being the administrative agency of the state in the locality and the People's Committee being its executive agency. MOT has the responsibility for planning, managing and maintaining national transport infrastructure. For the transport-related issues, the cooperation of other central government ministries like Ministry of Industry and Trade, Ministry of Nature Resources and Environment, Ministry of Science and Technology, Ministry of Finance is a prerequisite. The MOT’s responsibility also extends to assisting local governments in project selection. The MOT prepares long-term transport strategies and the five-year Public Investment Program, and receives the funds from the annual state budget. Annex 17 illustrates the general institutional structure of the government of Vietnam. The Provincial Transport Department under the People’s Committees of Provinces and Cities has responsibility for transport issues in the Province and in the Municipality, in particular the development and management of the provincial and district roads. According to Decree No. 107/2012/ND-CP by the Prime Minister defining the regulatory functions, duties, powers and organisational structure of MOT, the responsibilities of MOT with respect to environmental management in transport sector are enumerated as follows: a) Organise review council for Strategic Environment Assessment and Environmental Impact Assessment reports of projects that are subject to the approval within the competence of MOT. 42

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

b) Provide certification standard for environmental facilities of road, railway transport, inland

waterway, maritime and aviation; including leadership in supervising, certifying environmental

standards for cars and other motor vehicles; c) Coordinate with the MONRE, other ministries, ministerial-level agencies and government

agencies concerned and the relevant provincial People's Committees to direct, guide and supervise the implementation of legislation on environmental protection and other provisions

of law relating to the construction of transport sector infrastructure and transport operations; monitor and supervise the implementation of the provisions of the Law on Environmental Protection (LEP) in the field under the jurisdiction of the MOT.

In this respect, the Department for Environment under the MOT (existing since 2008) is the focal agency responsible for the implementation of environmental measures in transportation sector, Vietnam Register is a body responsible for type approval, vehicle inspection and emission standards enforcement, while TDSI is one of the most well-known organisations in studying and developing strategies and policies in transport sector in Vietnam.

The two other key ministries that have primary responsibility for policy making related to sustainable transport and its energy use are the Ministry of Industry and Trade and the Ministry of Finance, predominantly relevant for ‘improve’ policies (though pricing instrument will have an impact on ‘shift’ and ‘avoid’ as well), as shown in Figure 20. The development and implementation of these policies involves coordination with other ministries such as MONRE, Ministry of Planning and Investment, Ministry of Science and Technology and Ministry of Public Security. Annex 18 provides

a list of government agencies under these ministries that are responsible for land transport, energy, and climate change.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Figure 20: Overview of primary responsibilities for transport policymaking Note: several other ministries (MOST, MONRE, MPI) also have a role in development and implementation of these policies. Source: Authors

Key Organisations

There are many organisations currently involving with the plans and projects in the area of land transport in Vietnam. Types of organisations vary from governmental-, public-, academic- organisations to private sector and international support. This section categorizes them and details their roles in sustainable land transport area. Table 17 outlines these organisations.

 Governmental organisations: Necessary policies/plans for sustainable transport in the national level need to be enforced by the governmental side.  Public organisations or civil society: Transport and climate change related public organisations in Vietnam are mostly autonomous non-governmental organisations. They play key roles in supporting and implementing those plans/polices into the practical level.  Academe and research institutions: Research and development is another crucial factor for the development of sustainable transport policies and plans. Studies in the transport sector have been carried out with the financial support from grant institutions during recent years for researchers in Vietnam. The key funding organisations for the transport researches are shown below.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

 : In the practical level, private sector is the successful key to adopt the

Private sector

policies/plans into practice.

 International donors / international development agencies: International support/cooperation is vital to the development of sustainable transport. Various

donors offer financial and technical support to Vietnam to tackle with the crucial problems in transport sector and are implementing sustainable transport projects/programmes (see Chapter 5

for a detailed overview).

Table 17: Organisations related to land transport in Vietnam

Type Name Role

Vietnam Register International Cooperation Department Environmental Department Road Transport Administration Ministry of Transport Vietnam Railway Authority (VNRA) See previous Transport Development and Strategy section for details Institute (TDSI) Provincial Departments of Transport Ministry of Industry and Trade (MOIT) Ministry of Finance Vietnam Environment Administration Government (VEA)

Pollution Control Department (PCD/VEA) Institute of Strategy and Policies for Ministry of Natural Resources and Environment Natural Resources (ISPONRE) and Environment Providing Institute of Hydro-meteorology and framework, Climate Change (IMHEN) guidelines, Department of Hydro-meteorology assisting and and Climate Change reviewing Vietnam Standards and Quality Institute Ministry of Science and Directorate for Standards, Metrology and Quality (STAMEQ) Technology Japan International Cooperation Agency International Agence française de donors/ Développement(AfD) development Canadian International Development See next section for details agencies/ Agency international AusAID (Australia) development banks World Bank Asian Development Bank United Nations Centre for Regional

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Type Name Role

Development (UNCRD)

GIZ Danish International Development Agency

German Bank KfW Finnish partners: Ministry of Foreign Affairs, GTK, SYKE Vietnam Clean Air Partnership (VCAP) Stakeholders networking Vietnamese Non-governmental A network of NGOs which is an open organisations and Climate Change forum for its members in exchanging (VNGO&CC) information, cooperation, and helping each other to connect to the National

Assembly, governmental organisations and other social organisations and donor agencies http://www.vngo-cc.vn VUFO-NGO Resource Centre Facilitate work between international Vietnam non-governmental organisations in NGOs/Associations Vietnam http://www.ngocentre.org.vn Vietnam Automobiles Manufacturing Main activities: support for auto policy Association (VAMA) making, science and technology application, environment protection activities/regulations, international relations. They also have statistics on monthly sales http://www.vama.org.vn/ Vietnam Auto Motorcycle Bicycle No website Association (VAMOBA) Universities of Technology (Hanoi, Da Collaboration on local transport plans Nang, HCMC) (e.g. lifespan of motorcycles) Universities of Transport (Hanoi, Collaboration on local transport plans HCMC) (e.g. transport master plans) Academia National Institute for Education Plans to raise awareness on climate Management (NIEM) change disaster risk reduction through training of 35,000 education leaders (cf. “Areas for Support”)

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3.2 Regulatory Framework and Initiatives for Sustainable Transport

Vietnam ratified several international conventions, notably the United Nations Framework Convention on Climate Change (UNFCCC) on 16 November 1994 and the Kyoto Protocol on

25 September 2002. Since February 1995, Vietnam is officially a Non-Annex I Party of the Convention. The government has assigned MONRE to be the national focal agency in implementing the UNFCCC and the Kyoto Protocol in Vietnam.

According to Vietnam’s Second National Communication to the UNFCCC (MONRE, 2010), the National Assembly of Vietnam has issued a number of environmental protection laws and regulations (Annex 19) in order to reach the objective of UNFCCC on the “stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.” In addition, some key laws related to climate change are listed in Annex 19 (Tuan L. N., 2012). These laws provide a legal framework for the development and implementation of various policies and programs. Section 3.2.1 further discusses four frameworks for climate change. Meanwhile, in the land transport sector of Vietnam, efforts are being carried out to reduce emissions from the vehicles through capacity-building, tightening of standards, technology enhancement and infrastructure investments that focus on sustainability. The development of the Environmentally Sustainable Transport (EST) strategy shows the level of commitment Vietnam gives to ensuring sustainable future. The EST strategy now serves as the primary framework for green development in the transport sector. Section 3.2.2 discusses the Vietnam EST Strategy as well as other key legal framework for greening the land transport sector. Vietnam has also been active in promoting energy efficiency and conservation. Section 3.2.3 discusses Vietnam’s energy efficiency policies and legal framework. There are three highlights in this area: Decree No. 102/2003/ND-CP on Energy Conservation and Energy Efficiency which sets the initial foundations for energy efficiency policies; the Vietnam National Energy Efficiency Program that is the current framework of the MOIT for energy efficient investments, and; the Law on Energy Efficiency and Conservation. Decision No. 317/QD-BGTVT dated May 2013 emphasizes on completing the tasks planned for energy efficiency, the National Target Program, and Action Plan during period 2013–2015, specifically, the scheme on control of environmental pollution in transport activities (Decision No. 855/QD-TTg on 6 June 2011), the National Target Program on Energy Efficiency and Conservation period 2012–2015 (Decision No. 1427/QD-TTg on 2 October 2012), the National Target Program to Respond to Climate Change period 2012–2015 (Decision No. 1183/QD-Ttg on 30 August 2012), and Action Plan to Respond to Climate Change period 2011–2015 by the MOT (Decision No. 199/QD-BGTVT on 26 January 2011). Figure 21 gives an overview of how the different strategies are related.

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Figure 21: Sustainable transport and climate change strategies in Vietnam: climate change strategies are a driver for transport strategies and energy programmes with transport components. Source: Authors

Moreover, the Prime Minister’s Decision approves the need to perform the necessary steps to control emissions of motorcycles and mopeds in Hanoi and Ho Chi Minh City, as well as the need to complete the legal basis for applying the emission standards of Euro 3 and Euro 4 on cars, motorised two-wheeled production, assembly and imports.

3.2.1 Vietnam’s Response to Climate Change Mitigation and Adaptation Climate change is a major issue in Vietnam, but the policies are only recently catching up, with adaptation being emphasised more than mitigation. Most of the policies that govern climate change mitigation and adaptation focus on emission reduction, capacity-building, infrastructure development, and law enforcement. Four major strategic frameworks and action plans on climate change have been formulated in the recent years: the National Target Program to Respond to Climate Change, the National Climate Change Strategy, the National Green Growth Strategy, and the National Action Plan to Respond to Climate Change from 2012-2020 (DMHCC and MONRE, 2012).

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National Target Program to Respond to Climate Change

The National Target Program to Respond to Climate Change (NTP) is an extensive programme proposed by MONRE through Resolution No. 60/2007/NQ-CP, and approved by Decision No. 158/2008/QD-TTg and Decision No. 1183/2012/QD-TTg covering the period of 2012-2015 which also specifies the tasks of MOT. NTP is a cross-cutting document of various policies that cover impact assessment, measurement identification, technological development, capacity-building,

public awareness, international cooperation, planning and mainstreaming, and action plan development and implementation. The programme is essentially a policy and action framework for each government agency to set climate change impact mitigation in motion.

National Climate Change Strategy As opposed to the NTP which vaguely stipulates programs and actions, the National Climate Change Strategy (NCCS) proposes more specific targets at a longer term and time frame (Prime Minister Nguyen Tan Dung, 2011) and expands the NTP to a timeframe of 2016-2025. The NCCS is the most updated framework for climate change impact mitigation for the sustainable development of Vietnam, remaining to be the prime strategic framework for climate change impact mitigation in Vietnam. The specific targets for transport are as follows: • To design and implement policies which support and encourage the effective use of energies in economic fields, especially in transportation, urban development, industry, and agriculture; to check and reject ineffective technologies which largely consume energies and create greenhouse gases. Up to 2015, the plan on rejecting ineffective technologies must be finalised and issued. • To research, develop and apply technologies, equipment and consumer goods which use energies effectively, consume non-fossil energies and create low emission, especially in transportation, urban development, industry and agriculture. • To plan the system of transportation and improve its quality to international standards; to develop means of public transport in urban areas while controlling the growth of individual means of transport. By 2020, the system of public transport must in the main satisfy the society’s demand for transportation. The modernisation of a nationwide transport network and externally-orientated transport corridor must be completed by 2050. • To introduce fuels of low greenhouse gas emission to means of transport; to encourage buses and taxis’ consumption of compressed natural gas and liquefied gas, so that 20% of these vehicles will use such energies by 2020 and 80% by 2050. • To set up and apply mechanisms and policies encouraging the use of energy-saving vehicles while getting rid of energy-intensive ones.

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National Action Plan to Respond to Climate Change in 2012-2020

This action plan reinforces and updates the objectives stated in the National Climate Change Strategy. It contains 65 programs, projects and tasks for 2012-2020 with 10 priorities in 2012-2015 (DMHCC and MONRE, 2012). The action plan was approved on 5 October 2012 and the implementation of programs and projects is still ongoing.

National Green Growth Strategy and National Green Growth Action Plan

The National Green Growth Strategy for the Period 2011-2020 with a vision to 2050 (or simply National Green Growth Strategy) as a climate change strategic framework focuses on sustainable economic development. Though it contains policies that relate to transport, the Green Growth Strategy is first and foremost an economic restructuring strategy for sustainable development. The strategy’s objectives cover restructuring the economy to a “green economy”, new technologies for natural resource management, and promotion of environmentally friendly lifestyle to the people (Ministry of Planning and Investment, 2012). The strategy has three primary tasks for green growth: (1) reducing GHG with promotion of clean and renewable energy, (2) greening production, and (3) greening lifestyle and promoting sustainable consumption. These tasks entail corresponding targets that extend up to the year 2050. For GHG reduction, the targets are stated in Table 18.

Table 18: Targets for the GHG Reduction Task of the Green Growth Strategy Period Targets • Reduce the intensity of GHG emissions by 8 - 10% compared to 2010 level • Reduce energy consumption per unit of GDP by 1 – 1.5% per year 2011-2020 • Reduce GHG from energy activities by 10% - 20% when compared to BAU scenario • Voluntary reduction of approx. 10% and an additional 10% from international support • Reduce annual GHG emissions by at least 1.5 - 2% • Reduce GHG emissions from energy activities by 20 – 30% compared to BAU 2030 scenario • Voluntary reduction of approx. 20% and an additional 10% from international support 2050 • Reduce GHG emissions by 1.5 – 2% annually

Meanwhile, the task of “greening lifestyle” mentions a target of a 25-30% mode share for public transport by 2020 pursuant to Decision No. 355/QĐ-TTg dated 25 February 2013, which would require various investments on awareness programs and improvement of customer service. In line with the targets, the National Green Growth Strategy states 17 specific action plans, a good number of which are explicitly for improving transport systems and technology: • Improving effectiveness and efficiency of energy use, reduce energy consumption in production activities, transportation and trade; 50

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• Changing the fuel structure in industry and transportation;

• Development of key sustainable infrastructure including: transportation, energy, irrigation

and urban works; • Focus investment in research, development and application of green technologies, including: green energy technologies, the use of green materials and green construction, green transportation technology, green technologies for agriculture, forestry, biology, chemistry and waste management; • Work for sustainable urbanisation, including urban transportation particularly:

- Invest in renovation and development of technical infrastructure systems for urban

transportation to achieve at least the average level of development in comparison with advanced countries in the region. - Prioritize the development of public transportation in urban areas with involvement from all economic sectors both in terms of investment in fuel efficient vehicles and exploitation of public transportation. - Use economic instruments and technical standards to control the quantity development of individual motorized vehicles in large and medium cities, allocating special routes for non-motorized vehicles. The National Green Growth Action Plan for the period 2014-2020 concretises the National Green Growth Strategy and composes of 4 main themes, 12 groups of activities. Regarding the transport sector, some specific activities were proposed as follows: - Establish and implement investment and tax policies as well as economic instruments for developing diversified transportation network that meets the transportation demand, saving energy and reducing environmental pollution. Optimize transportation networks and vehicles to improve energy efficiency, reducing traffic jams. Implement approved projects on environment pollution control in transportation, emission from cars, motorbikes - Enhance the application of new technology, usage of renewable energy and less GHG emitted fuels in transportation. Implement a set of management in fuel, emission standards and vehicles maintenance. - Invest to develop types of public transportation saving energy, using clean energy with low emission. Encourage all economic sectors to invest to develop high-quality public transportation services. - Review the development in the period of 2000-2013 of the transportation sector under the light of sustainable development

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3.2.2 Vietnam’s Strategies for Sustainable Transport

Action Plan of the Ministry of Transport to Respond to Climate Change in the Period 2011- 2015

In 2010, the Ministry of Transport developed the Action Plan to Respond to Climate Change in the Period 2011-2015 (Decision No. 199/QĐ-BGTVT dated 26 January 2011) for three important

objectives: to assess impact level of climate change to the road, railways, inland waterways, maritime, aviation sectors and transportation activities, to identify suitable adaptation measures for transport construction works to minimise damage and ensure smooth and safe traffic, and to mobilise international resources to support the application the solutions to adapt to climate change, to mitigate GHG emissions and to raise awareness, expertise, management operations. The programme also provides solutions to establishing mechanisms for policy implementation, organisation and international cooperation, some financial and technical solutions. In 2015, a new transport sector Climate Change Action Plan for the period 2016-2020 is being developed.

Towards Development of Strategic Directions for the Promotion of EST in Vietnam In 2005, an international policy framework for sustainable transport was established: the Asian Regional EST Forum, initiated by UNCRD and the Ministry of Environment of Japan (MOEJ). Strategies for various EST measures have since been adopted in various Asian countries. In Vietnam, MONRE, MOT, UNCRD and MOEJ (2012)18 produced the report Towards Development of Strategic Directions for the Promotion of EST in Vietnam, which identifies challenges and proposals for strategic orientations for the development of an EST in Vietnam in the future to meet the sustainable transport goals of Bangkok Declaration 2020 listed in terms of the Avoid-Shift-Improve framework19. The report proposes responsibilities for the implementation of measures and lists 10 proposed targets: 1. Development of public mass rapid transit systems in Hanoi and HCMC, reaching a market share of 35-45%; 2. Rational development of urban transport infrastructure and public transport system, ensuring 16-26% of land reserved for urban transport; 3. Restraint of the growth of private motorized vehicles, ensuring that by 2020 there are no more than 4 million automobiles and 40 million motorcycles in the whole country. 4. Reduction of TSP generated in Class I cities and above, ensuring national environmental technical specifications and standards as well as standards stipulated by WHO; reduction of

SO2, NOx and VOC in Hanoi and HCMC from the 2005 figures; 5. Euro 3-equivalent emission standards to be applied to motorised two-wheelers and Euro 4 to new produced, assembled and new imported automobiles from 2017;

18 MONRE and MOT (2012) “Towards Development of Strategic Directions for the Promotion of EST in Vietnam by 2020” at http://www.uncrd.or.jp/content/documents/Viet-Nam_NESTS.pdf 19 More information on Avoid-Shift-Improve is available from the GIZ Sourcebook “Transport and Climate Change: Sourcebook Module 5e” at http://www.slocat.net/sites/default/files/5e-tcc-en.pdf 52

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6. Emission check on motorcycles in use in major cities and provinces pursuant to the Prime

Minister’s Decision 909/QD-TTg;

7. Clean and alternative fuels to be used accounting for 10% of the total fuel consumption, with quality equivalent to Euro 4. Intensify the conversion of buses and taxes, such that those using CNG and LPG reach 20% of the fleets in major cities;

8. Implementation of measures to improve fuel efficiency in transport;

9. Substantial reduction of traffic accidents both in numbers of accidents and in numbers of fatalities and injuries, with an annual reduction of 5-10% of traffic accident-related deaths; 10. Development and improvement of air environmental quality monitoring networks, particularly in major cities.

Transport development strategy In February 2013, the government issued “Decision No. 355/QD-TTg approving the adjusting strategy of Transport development in Vietnam up to 2020, with a vision to 2030” Among its goals is to form a rational transport system between various means of transport, which should be a step toward the modernisation of Vietnam and toward becoming an industrialised country by 2020. Other strategies mentioned are in regard to integration and international competition, such as connectivity with ASEAN road system, expansion of Mekong Sub-region and trans-ASEAN railways. Several Decisions of the Prime Minister led to the development of Vietnam’s transport development strategy. For instance, Decision No. 206/2004/QD-TTg was approved in December 10,

2004 approving the Strategy on Development of Vietnam’s Communication and Transport till 2020. Among its strategies is “to give priority to the development of mass transit, especially large-quantity public passenger transport modes, ensuring the mass transit ratios of 25-30% by 2010 and 50-60% by 2020 in big cities, and to limit the motorbike number, and at the same time adopt rational solutions to development of private cars, especially in two big cities of Hanoi and Ho Chi Minh city.” It also aims to utilize technologies to manage urban traffic such as traffic signals, control posts and camera systems. Moreover, it aims to develop maritime transport to increase the percentage of shipped export and import cargo volumes. This framework eventually influenced the adoption of succeeding measures such as the piloting of intelligent transport systems and the infrastructure development of public transport systems to improve the transport sector in Vietnam as briefly presented in Section 3.3. In 2009, Decision 35/2009/QD-TTg dated 3/3/2009 on Transport Development Strategy up to 2020 and orientation to 2030 was eventually issued in recognition also that transportation should be developed toward a modern and high-quality system with reasonable cost, safety, reducing environmental pollution and energy saving by application of advanced transport technology, especially multi-modal transportation and logistics.

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Sustainable Development Action Plan of MOT

Adopted in 2013, the Sustainable Development Action Plan of the Ministry of Transport for the period 2013 – 2020 (4088/QĐ-BGTVT) gives general actions and guidance to transport plans and policies:

• Improve institutional and strengthen management capacity

• Integrate the principles of sustainable development in the plans/strategies. • Mobilise all resources to effectively implement the transportation plans/strategies

• Approach to the development of green freight

• Enhance the quality and safety of the transportation system • Strengthen the pollution control in transport operations • Encourage efficient natural resource use • Promote the application and transfer of the technologies associated with sustainable development • Promote international cooperation in the implementation of the action plan • Training and awareness raising in the field of sustainable transport development.

Vehicle exhaust emission standards for in-use and new vehicles The Prime Minister’s Decision 249/2005/QĐ-TTg dated 10 October 2005 specifies the permitted maximum emission limit of locally manufactured and assembled, imported new motor vehicles as well as in-use motor vehicles. For manufactured, assembled and imported new cars and motorbikes, an updated regulation has been approved and will be mentioned below. For second-hand motor vehicles imported into Vietnam, the Decision sets a permitted maximum emission limits to 3 types of vehicles according to the regulations in Table 19 effective 1 July 2006: mopeds and motorcycles with spark-ignition engines shall follow Limit 2; automobiles with spark-ignition engines shall follow Limit 3, while vehicles fitted with compression-ignition (diesel) engines shall follow Limit 3.

The document likewise outlines emission standard limits for in-use diesel and gasoline vehicles having number plates of the cities of Hanoi, Ho Chi Minh, Hai Phong, Da Nang and Can Tho, to follow Limit 1 beginning 1 July 2006, and of the remaining provinces and cities to follow Limit 1 beginning 1 July 2008.

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Decision No. 249/2005/QD-TTg emission limits of road motor vehicles1

Table 19:

Vehicles fitted with spark-ignition (gasoline) engines Vehicles fitted with compression ignition Automobiles Mopeds, motorcycles Pollutants in exhaust gas (diesel) engines Limit Limit 1 Limit 2 Limit 3 Limit 1 Limit 2 Limit 2 Limit 3 1 CO (% volume) 4.5 3.5 3.0 4.5 - - - -

HCC (ppm volume) - Four - stroke engines 1,200 800 600 1,500 1,200 - - - - Two - stroke engines 7,800 7,800 7,800 10,000 7,800 - - -

- Special engines2 3,00 3,00 3,00 - - - Smoke opacity (% HSU3) - - - - - 72 60 50 Notes: 1 Issued together with the Prime Minister's Decision No. 249/2005/QD-TTg of October 10, 2005 2 Special engines include Wankel engines and a number of other engines with special structures different from those of piston engines which are widely used. 3 HSU = Hartridge Smoke Unit

MOT has tightened the emission standards for in-use diesel vehicles, both light- and heavy-duty (Clean Air Asia, 2014). To suit the vehicle fleet in 2005 when the regulation was passed, the new standards require all such vehicles to achieve a smoke opacity test result of 72 Hartridge Smoke Units (HSU)20 or less. Meanwhile, Decision No. 49/2011/QD-TTg dated 1 September 2011 provides the roadmap for application of exhaust emission standards to manufactured, assembled and imported brand-new cars and motorbikes, requiring manufactured, assembled and imported brand-new cars to comply with Euro 4 exhaust emission standard from 1 January 2017 and Euro 5 exhaust emission standard from 1 January 2022. It likewise requires manufactured, assembled and imported brand-new motorbikes to comply with Euro 3 exhaust emission standard from 1 January 2017. Table 20 summarises the roadmap of vehicle emission application in Vietnam.

Table 20: Vietnam roadmap for Euro 3, 4, 5 emission standards* Automobiles** Motorcycles Fuel quality Euro 3 N/A*** 1 January 2017 Euro 4 1 January 2017 N/A 1 January 2016 Euro 5 1 January 2022 N/A 1 January 2021 * Enacted through Decision No. 49/2011/QD-TTg on 1 September 2011 ** Includes light duty vehicles and heavy duty vehicles. *** The government enacted Decision NO. 249

Development of fuel economy standards and energy consumption labelling While as of June 2015 Vietnam has yet to establish mandatory fuel economy standards for the transport sector, certain elements of its development are being prepared such as fuel quality, fuel consumption and vehicle exhaust emissions. MOT is developing the fuel economy standards for

20 A smoke test is a component of vehicle emission inspection. Hartridge Smoke Unit (HSU) measures smoke density of vehicle exhaust emissions. The higher the scale of percentage opacity, defined in terms of HSU, the denser the smoke. 55

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector motorcycles and light duty vehicles and currently there are two non-mandatory standards on limit of

fuel consumption for passenger cars and two-wheeled motorcycles and mopeds.

In April 2014, VAMA proposed to the government that the internationally recognized fuel consumption test results be used once passenger vehicles (up to seven seats) are required to have an 21 fuel consumption label starting 1 January 1 2015 in accordance with a Circular released by MOT . Fuel labelling for passenger cars, which will include the fuel consumption in urban and rural cycle, 22

test method, and energy savings, has become mandatory in 2015 . Domestically manufactured or assembled cars already certified to meet technical safety and environment requirements by 2015 are likewise required to display the label effective 2016 (Tuoitre Online, 2014; Chi, 2014).

As mentioned in Section 2.4.3, the (non-mandatory) national standards TVCN 9854:2013 on fuel consumption limits for passenger cars and method for determination has been established through Decision No. 2586/QD-BKHCN dated 22 August 2013, while national standards TCVN 7356:2014 on fuel consumption limits for two-wheeled motorcycles and mopeds has been established through Decision No. 1201/QD-BKHCN dated 23 May 2014.

3.2.3 Vietnam’s Response to Energy Efficiency and Conservation As the energy consumption of Vietnam is projected to increase significantly within the next decade (as discussed in Section 2.2), measures are being taken to provide a sound legal framework for energy efficiency.

Decree No. 102/2003/ND-CP on Energy Conservation and Energy Efficiency In 2003, the Prime Minister of Vietnam approved Decree No. 102/2003/ND-CP on Energy Conservation and Energy Efficiency or “EE&C.” The decree specifies roles and responsibilities for the various government agencies regarding energy efficiency. It focuses on mitigating energy use by production establishments, buildings, and equipment through technological modifications and choice of investment, energy-efficient design, and operations management. The decree also aims to promote thrifty energy consumption of citizens’ lifestyles.

Vietnam National Energy Efficiency Program In line with EE&C decree, the Ministry developed specific strategies to promote energy efficiency. MOIT currently leads the activities and projects provided by the Vietnam National Energy Efficiency Program, whose objective is to map activities between 2006 and 2015 to reach certain targets on energy saving, investment reduction for energy supply system, and social economic benefit. Regarding transport sector, the sixth component requires making optimal use of transportation facilities, equipment and minimize amount of fuel consumed.

21 A joint Circular between Ministry of Transport and Ministry of Industry and Trade (No. 43/2014/TTLT-BGTVT-BCT) has been issued on the energy labels for passenger car up to 7 seats. This regulation stipulates that from January 1, 2015, brand-new domestically assembled and imported cars must be labelled with energy labels before selling to consumers. The fuel consumption values before public shall be verified by a competent test centre. The tested value shall not exceed the declared value of manufacturer or importer more than 4%. On the other hand, the current regulation only requires enterprises to make public information about fuel consumption, while it does not set the maximum possible consumption level. 22 http://www.fiafoundation.org/our-work/global-fuel-economy-initiative/in-country-work (accessed 23 July 2015) 56

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National Targeted Programme on Energy Efficiency and Conservation Phase 2012-2015

In 2012, National Targeted Programme on Energy Efficiency and Conservation (EE&C) Phase 2012-2015 was approved pursuant to Decision No. 1427/2012/QD-TTg dated 2 October 2012. Among the six objectives stated in the document, the programme sets one target focusing primarily on transportation: Development of transportation system to meet the transport demand with increasingly high

quality, save fuel and reduce environmental pollution. Reinforce the application of new technologies, renewable energy to replace traditional fuels in transportation. Strive to have

public transport in 2015 meeting the 10 - 15% of travel demand in large urban areas.

Minister Vu Huy Hoang of MOIT states that for a successful EE&C program, a saving rate of 5-8% of Vietnam’s total energy consumption must be reached in the period 2011-2015. Annex 19 lists the key documents on Vietnam’s energy efficiency strategies.

The Law on Energy Efficiency and Conservation This Decision is pursuant to the Law on Energy Efficiency and Conservation which was passed by the 12th National Assembly on 18 June 2010 and emphasises the road map of energy labelling. It highlights energy labelling as an effective method to increase the use of vehicles and appliances with high efficiency, gradually removing the use of vehicles and appliances with outdated technology, reducing energy consumption in production. The law likewise encourages organisations and individuals “to provide consultancy on and design and invest in the development of mass transit networks, manufacture and use energy-saving vehicles, exploit and expand the application of liquefied gas, natural gas, electricity, mixed fuels and biofuels in replacement of petrol and oil,” as well as inspection and maintenance of vehicles to reduce fuel consumption, and mandates the MOT to “direct and guide the elimination of expired vehicles or those failing to reach the minimum energy yield,” and to “plan the investment in and exploitation of mass transit systems, increasingly use railway and waterway networks in combination with multimodal transport” (Ministry of Justice, 2010). Some interesting highlights of the policies is the establishment of a labelling scheme for EE&C through Circular No. 08/2006/TT-BCN, which is in line with the National Target Energy Efficiency Programme. This would include new and in-use vehicles to ensure that future programs and policies will align with the defined fuel economy/energy efficiency. Part of the proposed labelling scheme of the Law is the grouping of vehicles, including cars. Annex 19 lists other key documents on Vietnam’s Energy Efficiency.

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3.3 Existing policies

While there are policies on transport and energy efficiency being implemented in Vietnam that do not list climate change as their primary rationale, these have co-benefits that support the efforts to tackle climate change such as reduction of emissions and of vehicular congestion. Additionally, a good number of transport policies are intended for other social and economic purposes such as improved logistics.

Table 21 and Table 22 provide a summary overview of the key policies and measures in passenger and freight transport, respectively, and their status as of the end of 2014 in Vietnam, while Annex 20 particularises the measures and policies and also includes the information sources. Status is assessed according to these categories: • Implemented: the policy is implemented and enforced, or the transport plan (e.g. metro) is completed and functioning. However, it does not imply there can be no further implementation, e.g. if a certain fuel economy standard is implemented, a future, more stringent, standard can still be developed, or new standards be developed for other types of vehicles • Partially implemented: some parts of the policy or transport plan are (being) implemented • Implementation ongoing: implementation has started but not yet completed • Pilot: may refer to a policy that is being implemented, but not (yet) at a large scale • Planned: clear policy signals, particularly published official documents, that a policy will start implementation in a certain year in the future • Intended: evidence of policy discussions have been found (public information or personal communication) • Not in discussion: no information on policy discussion has been found The policies have been categorised according to Avoid, Shift, Improve or General policies: “Avoid” policies refer to those that reduce the need to travel or the length of travel; “Shift” policies refer to those that encourage a shift to more efficient modes of transport or those that promote a high share of such modes, and; “Improve” policies refer to those that increase energy and carbon efficiency of vehicles, their operation and fuels used in the different modes.

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Table 21: Passenger transport policies and measures: current status (end 2014)

Existing policies /measures Implementation Status Remarks -

Avoid Road pricing Partially implemented Toll roads are applied for roads under PPP and BOT schemes. | Cooperation Technical German TOD / land-use planning Intended There is a specified distance between mass transit routes in urban centre to the public transport infrastructure. Shift – Bus management reform Partially implemented Hanoi has a centralised bus operator management and contracting system, smaller cities have not incentives / Parking policies Implementation ongoing Many larger cities have paid parking, but no comprehensive parking management plan; pilot cases for park and ride regulation/ facilities have been developed by organisations such as ADB and local People’s Committee. information Low prices for some public Partially implemented Some public bus services are subsidised by local government in order to keep low prices. transport options Integrated ticketing for PT Intended Some bus lines have integrated tickets, for rail and bus integration discussions are at early stage Shift – High-speed rail infrastructure Planned The express railway linking HCMC and Hanoi is being studied, and investments have been proposed. infrastructure Improvement of inter-urban rail Planned National railway transport master plan intends to connect Hanoi and HCMC. Urban rail Planned / pilot Six metro lines are planned and two are being constructed for HCMC while in Hanoi, eight metro lines are planned

and two are being constructed. Energy Efficiency and Climate Change Mitigation in the Land Transport Sector BRT and other bus prioritisation Implementation ongoing The pilot BRT system in Hanoi is being constructed. It is started in mid-2013 and planned to operate by mid-2015. The total length of the route is approximately 14.7 km with 23 stops included 2 stations. Danang is planning 1 line. Sidewalks Implementation ongoing A minimum width of pedestrian pavements along each side of the road is required. Initial plans to pedestrianise certain roads drew mixed reactions. Cycling lanes and bike sharing Pilot Vietnam will launch pilot public bike rental services in 5 cities in 2015. And in the master plan, bicycle route has been defined in some areas to attract the people. Regional or higher grade roads are required to have bike lanes. Improve – CO2 or energy based vehicle tax Partially implemented There is import duty reduction for certain energy efficient vehicles efficiency Car / motorcycle labelling Implementation ongoing Producers and importers are required to affix equipment and vehicles with energy labels. Fuel consumption labelling for passenger cars of 7 seats and less since on 1 January 2015. Fuel efficiency standards Partially implemented A study on fuel consumption standards for LDVs and motorbikes was completed in 2013. The non-mandatory standard on limit of fuel consumption for passenger cars and two-wheeled motorcycles and mopeds has been issued. Improve – Speed limits Implemented Speed limits are in place for motor vehicles. Its main purpose is to ensure traffic safety. operation Ecodriving Not in discussion Real-time public transport Pilot The city of Danang has an agreement with IBM technology to establish a real-time information on Danang’s city information (ITS) buses such as driving speed, location, and predicted journey times. Traffic flow improvement (ITS) Pilot Pilot for a traffic control centre in Danang City. Hanoi has a Traffic Signal Control Centre but it appears that only a small fraction of the cameras installed are functioning and the software is outdated. Inspection and maintenance Implementation ongoing This had been applied for motor vehicles from 2006 under Decision 249/2005/QD-TTg. Improve – fuel Incentives for low-carbon fuels Implementation ongoing Vehicles running on LPG, natural gas, electricity, mixed fuel or biofuel which are domestically unavailable are entitled to import duty exemption and reduction under the tax law. E5 is less expensive than gasoline. Standards for biofuels Implementation ongoing By 1 December 2014, petrol with 5% bioethanol content, or E5 petrol, will be sold in 7 cities and provinces, and vehicles in these areas will be required to use biofuel by 2015 CNG/LPG for taxis and buses Implementation ongoing CNG/LPG taxis are operated in Hanoi and HCMC. Law No.50/2010/QH12 states the exemption/reduction under the tax law for the natural gas, electricity and mixed fuels and biofuels which are domestically unavailable. There are programmes to replace diesel bus by CNG bus implemented in several cities in South of Vietnam, including HCMC. 59 Electric vehicle incentives (2W/car) Intended Electric 2-wheelers are increasing without policy interventions, for cars discussions are taking place

General Fuel price reform Intended Being considered to revise regulations on the pricing of fuel products to bring them in line with market trends

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60 Table 22: Freight transport policies and measures: current status (end 2014)

Existing policies/measures Implementation Remarks -

Status | Cooperation Technical German Avoid Pipelines Implementation Trans-ASEAN Gas Pipeline (TAGP) designed to interconnect gas pipeline infrastructure of ASEAN ongoing member-states. International consortium and construction have been founded and have begun. Oil pipeline network exists. Improve logistics centres and Implementation Logistics centres are further being built near key cities and ports. Vietnam recognizes the importance their location ongoing of ensuring “interconnectivity between seaports and national transport networks and core logistics centres in the region” as cited in their master plan on development of Vietnam’s seaport system through 2020, with orientation toward 2030. Shift Lorry restrictions Partially In 2011, HCMC people’s committee regulated the restricted schedule for lorries to be run in the urban implemented area. Master planning for rail and Planned The national railway transport master plan focuses on developing the external railway network linked water with seaports and border countries. There are plans to upgrade the current railway connecting HCMC

and Hanoi. Energy Efficiency and Climate Change Mitigation in the Land Transport Sector Multimodal facilities/dry ports Intended In November 2013, Vietnam, along with 13 other countries, signed an inter-governmental agreement on dry ports, pledging to create an integrated and sustainable inter-modal transport and logistics system. Improve – Import restriction for Implementation Second-hand vehicles that are to be imported must not be over five years of age from the date of efficiency inefficient vehicles ongoing manufacture to the date of import but no tax incentive to efficient vehicles. Fuel economy/ emission Intended standard Improve – Vehicle scrapping/fleet Not in discussion While vehicle-scrapping programs are not at the national policy level, Vietnam limits the age of motor operation replacement vehicles. Decree No.95/2009/ND-CP regulates that passenger automobiles of over 20 years, cargo automobiles of over 25 years, will be suspended from circulation Empty hauling reduction Pilot / planned DRVN is planning a ‘stock exchange’ and a freight database or clearing house. ADB-GMS Green Freight pilot project is also working on this. Inspection and maintenance Implementation Law on Environmental Protection requires motor vehicles to satisfy gas emission and noise standards. ongoing Circular No.21/2010/further regulates the life time of freight truck, freight car, and passenger cars. I/M had been applied for motor vehicles from 2006 under Decision 249/2005/QD-TTg Speed limits/management Implemented Speed limits are regulated in expressway, national and province roads. Inter-city bus and freight vehicles plying any 500-km-plus routes are required to install a black box, a device that would record speed and driving time. Eco-driving Intended While there seems to be no decrees promoting eco-driving, the private sector collaborates with the government to raise awareness on fuel-efficient driving methods. Tyre standards / labelling Not in discussion Aerodynamic standards Not in discussion - Improve – fuel Low carbon fuel (1st/2nd gen Implementation Vehicles running on LPG, natural gas, electricity, mixed fuel or biofuel which are domestically Biofuel, CNG, LPG) ongoing unavailable are entitled to import duty exemption and reduction under the tax law.E5 is less expensive incentives than gasoline. General Fuel price reform Intended Being considered to revise regulations on the pricing of fuel products to bring them in line with market trends

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It appears that most of the key policies, particularly in the passenger transport sector, are being

planned, piloted or implemented. In relation to fuel economy policies for new vehicles, mandatory

labelling for new passenger cars (up to 7 seats) and voluntary fuel economy standards (for passenger cars and motorcycles) are in place, while fuel economy standards are also intended for trucks. An inspection and maintenance programme has been in place for cars, motorcycles and trucks since 2006, with 114 testing centres in 63 provinces as of 2014, albeit lacking in effective implementation due to uncalibrated equipment and outdated test procedures as well as limited capacity of the inspectors. However there are concerns as to the effective implementation, due lack of capacity of the inspectors, uncalibrated equipment and outdated test procedures. In the context of tyres, it appears no policy discussions on energy-efficiency standards or labelling is in place. The

same can be said of CO2-based vehicle taxation, although incentives for energy-efficient vehicles exist. Policies related to limiting the growth in private vehicle transport demand, such as parking management, vehicle and fuel taxation, road pricing are in the pipeline or are being implemented. Efforts to increase the mode share of public transport, especially for BRT and MRT, are mostly focused on larger cities like Hanoi and Ho Chi Minh City. For optimizing bus systems, reforming their management systems and increasing their attractiveness, Hanoi and HCMC have made

progress, however for other cities policy are not developed. Also, policies such as low-emission

zones, pedestrianisation of roads and provision of walking and cycling infrastructure, application

of transit-oriented development, together with information instruments such as campaigns, are not yet fully in place. In the freight transport sector, ‘Avoid’ and ‘Shift’ measures appear to be less in policy focus, although the government has been exploring plans to enhance maritime and rail freight transport, and to improve logistics activities.

3.4 Finance The Ministry of Finance (MOF) is the primary agency that manages Vietnam’s national revenues and expenses. The Ministry of Planning and Investment (MPI) governs mobilisation of funds as decreed by the Ministry of Finance. As a middle-income economy, Vietnam has yet to have the capacity to fund all its large-scale programs and projects for climate change mitigation, energy efficiency and transport; as such, Vietnam heavily utilises the provisions of international partners and organisations. Vietnam coordinates with the Asian Development Bank and the World Bank to tap USD 250 million from the Clean Technology Fund (CTF) for targeted low-carbon investments in the power, transport, and industrial sectors.23 The CTF Investment Plan of Vietnam proposes financing for meeting mid-term goals of reducing energy consumption by 5-8% by 2015 as cited in National Targeted Programme on Energy Efficiency and Conservation Phase 2012-2015 in Section 3.2.3

23 For more information on the investment plan for Vietnam, visit Climate Investment Funds at https://www.climateinvestmentfunds.org/cifnet/country/vietnam 61

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In the transport sector, CTF funding amounting to USD 48.95 million has been approved in

September 2013 for the project “Sustainable Urban Transport for Ho Chi Minh City Mass Rapid

Transit Line 2 Project in Vietnam” submitted by the Government of Vietnam and ADB. In September 2011, CTF funding of about USD 1 million has been granted to for the project preparation grant “Vietnam: Strengthening Sustainable Urban Transport for Hanoi Metro Line 3 Project,” submitted also by ADB. CTF financing will support enhancements in the urban transport systems, particularly in expanding the rail and bus systems Hanoi and Ho Chi Minh City, to help Vietnam reach its goals of increasing total PKT on public transport from 10-15% to 50% by 2020 (Climate Investment Funds, 2012).

Another foreign assistance fund is the Official Development Assistance (ODA) fund. It is currently the largest source of funding for development projects in Vietnam. Management of this fund is governed by Decree No. 131/2006/ND-CP dated November 09, 2006 for Promulgating the Regulation and Use of Official Development Assistance. According to MPI, Vietnam will have received about USD 80 billion in ODA by the end of 2013 (StoxPlus, 2013).

The National Target Program to Respond to Climate Change The National Target Program to Respond to Climate Change (NTP) specified that from 2009– 2015, the budget of implementing activities from the program is VND 1,965 billion (about USD 92.36 million in mid-2014) allocated as follows:

• 50% Foreign capital (ODA, CTF) • 50% Domestic capital o 30% central budget o 10% local budget o 10% private sector contributions. Specifically, for tasks regarding the program, estimated budget is presented in Table 23.

Table 23: Estimated budget of the tasks and projects for the implementation of the National Target Program

Tentative Budget Category, task, project (in VND Billion) Assess climate change intensity and develop climate change and sea level rise 38 scenarios Develop and implement science and technology programs on climate change 350 Building capacity of organisation, institution, policy on climate change 104 Awareness enhancement and human resources training 292 Enhance international cooperation 50 Develop a standard framework for mainstreaming climate change issue into 60 development Develop and implement action plans to respond to climate change 921 Source: The REDD Desk, 2008

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The Support Programme to Respond to Climate Change in Vietnam (SP-RCC)

AFD together with JICA were the pioneer donors in the Support Programme to Response to

Climate Change of Vietnam which coordinates support from multiple international donors in Vietnam by means of a ‘policy matrix’ since 2009. The World Bank and Australia, Canada, Korean

government also participate in this programme. So far, main climate funding has been distributed via the Support Program to Respond to Climate Change (SP-RCC). USD 240 million has been pledged by international and bilateral donor agencies towards the SP-RCC.

Private sector participation

According to the report “Status of Climate Finance in Vietnam” funded by the GIZ and the Climate and Development Knowledge Network (CDKN)24, private sector’s readiness to engage in climate change activity is still limited in Vietnam and further investigation into this area is highly recommended. An analysis of public-private partnerships (PPP) by the ADB (2012) suggested that the finance sector in Vietnam is underdeveloped and cannot yet sufficiently meet the need for long-term capital.

The Government of Vietnam can support the engagement of the private sector by developing innovative policies, including tax incentives, low-cost debt financing, equity investments, and

sharing of research and development costs. However, the factors that can contribute to a more

favourable investment environment in Vietnam still need to be analysed in detail to explore further potential for climate financing. A systematic reflection of the climate finance relevance of private sector activities is also needed.

3.5 Monitoring In the main report of VITRANSS, the lack of modern management system and database is highlighted as one of the major concerns in Vietnam. “New management systems, information

systems (including comprehensive inventories of infrastructure and work planning/management

tools), new guidance documents to define procedures (both to allow decentralisation and devolution of responsibilities within the sector and to coordinate activities between agencies in transport and agencies outside, especially the police)” are cited as among the priority areas for institutional strengthening. The availability of data is also observed to be limited to each administrator’s personal interests rather than shared more widely, with the lack of a central database resulting to managers having various sources of data that are usually in “conflict with each other”. The lack of reliable monitoring information could hinder the monitoring of policy implementation conducted by MOT as well as the effective planning for future initiatives resulting from the poor statistics. The government through the GSO provides most of the data required as well as TDSI, particularly through the Statistical Yearbook. Other sources of data are the research and development agencies

24 http://www.climatefinanceoptions.org/cfo/node/3526 63

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and donors which conduct studies prior to and during project implementation, such as the World

Bank, Asian Development Bank, French Development Agency (AFD), JICA, and National

Institute for Environmental Studies. The table below summarises the status of monitoring system in Vietnam.

In Vietnam, the ministries are responsible for reviewing, developing and promulgating the policies in accordance with their fields of responsibilities. As assigned by Minister, some state organizations under the Ministry will conduct the studies and these studies’ findings will provide the implications for the improvement of transport policies in Vietnam. In these studies, some data are surveyed and sometime are collected from many sources as mentioned in Section 2.5 (International donors, research institutes and private sector). And when the desirable data is not available, it is simply difficult for policy makers to evaluate and develop a good policy. Table 24 shows the current status of monitoring system for each group of policy in transport sector in Vietnam and from this we could see data availability is the key challenge in proposing the policies for some policy groups. Table 24: Current status of monitoring system for each group of policy in Vietnam Policy group Current approach Data availability Energy Driving cycles specified in terms of speed and Some data such as vehicle type, fuel type, efficiency times, are conducted by TDSI infrequently.a MOT engine size and fuel consumption can be (passenger) provides the roadmap for tightening emission obtained from VR as these data are standards, the enforcement of such is covered by included in the type approval process, in

Vietnam Register. registration files and/or I&M program.

Energy MOT provides the roadmap for tightening TDSI surveys fuel use by vehicle type and efficiency emission standards. As freight sector is gaining fuel type, though infrequently.a Load (freight) attention, development agencies, research bodies factors of trucks and logistics-related and the private sector have been providing database are either not available or not estimates for their technical reports. widely circulated and discussed. Urban Indicators for transport activity such as PKT are There is no comprehensive information or transport from GSO which releases statistics based on assessments on transport activity for all including surveys they conducted and on the reporting modes including walking and rickshaws, as public system of MOT. The transport activity units, well as km/year/vehicle. Transport and transport, including trips and distance per day by mode, are Urban Public Works Service annually NMT, land use surveyed, though infrequently. Information on updates passenger capacity per hour of the policies, etc. average growth of transport demand is kept by bus network, though infrequently, and MOT. Data on vehicle numbers and characteristics updates that of the rail system. It is also a

and ownership can be obtained from Vietnam possible source for interchanges within Register. Master plans drafted by private research rail and bus transit systems.a agencies often contain relevant data. Modal shift in MOT studies average growth of transport demand. Data can be obtained from Statistical non-urban Provincial Transport Departments surveys the Yearbook every year and Census every ten transport vehicle fleet at the local level. Police Department years. also provides information on motorcycle registration. Vietnam Register has registration details on cars, buses and trucks. Modal shift in MOT studies average growth of transport demand. Data can be obtained from Statistical freight Vietnam Register has registration details on cars, Yearbook every year and Census every ten buses and trucks. Vietnamese Inland Waterways years. May not be complete. Authority (VIWA) also conducts interviews.b Source: aClean Air Asia. (2005, December); bGille, Dusseldorp, Veldman. (n.d.)

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Regarding current practical policy monitoring, there is still weakness in the monitoring system, for example the vehicle labelling policy effective from 1 January 2015 however there is no assessment

on the impacts at this time, another example is the recent crackdown on overloading of trucks, with truck weighing stations are only located on some national highways and there is lack of both equipment and manpower. The capacity to monitor and evaluate programs and projects is strengthened, for example, with support from AusAID through learning-by-doing (Cuong & Fargher, 2007). OECD suggests that the goal of capacity development is “to inform policy making and increase accountability in-country, in support of shared development goals.” Institutionalisation of data collection remains a top priority. Evaluation of policies and projects can be greatly enhanced with knowledge-sharing between research agencies conducting the modelling and the government bodies. Evaluation of progress of the entire transport sector towards policy goals such as energy efficiency, climate change or air quality could be done, through sector-wide indicator such as MJ/p-km, MJ/t-km or modal split, which are currently not monitored and reported.

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4 Barriers to sustainable, energy-efficient transport

Given the scenarios in the future of the transport sector in Vietnam as presented in Section 2.3, there is a necessity to evaluate the fundamental barriers to implementing sustainable transport in

Vietnam. The review on current transport policies addressing sustainable transport and climate change reveals several points of considerations, while Annex 3 lists some regulatory and technical barriers of specific measures that have mitigation potential.

Political • According to the document Viet Nam Socialist Republic: Transport Sector Assessment, Strategy, and

Road Map published by ADB (2012), there has been an emphasis to separate policy, regulatory, and operator roles, citing the recent reorganisation of the roads and expressways subsector at MOT with the creation of the Directorate for Roads of Vietnam (DRVN) and the planned creation of an exclusive expressway administration agency, tentatively called the Vietnam Expressway Management Administration (VEMA), which were meant to improve institutional efficiency. However, the study observes that “a multi-modal orientation is still lacking, resulting in imbalances and integration problems between subsectors, and coordination with investments and programs in other sectors remains poor.” At the local level, there is a lack of integration of the different transport institutions under the city People’s Committee. Indeed, separate agencies exist for bus management, bus operations,

new agencies for MRT systems, and departments for road investment and traffic management. A case study of Hanoi also highlights that there are state-owned enterprises in the city responsible for supply of bus services and development of rail system which report directly to the People’s Committee (Phin & Dotson, 2013). Hanoi and HCMC however propose to establish urban transport authorities to undertake management, planning and regulations to ensure good coordination between the transport agencies (ADB, 2012). Institutional

• Institutional arrangements for railway projects are not flexible, as the capacity of private sector

to join in development programs is not facilitated. ADB (2012) observes that, while the Railway Law of 1995 encourages private sector participation, private companies can only participate through a joint venture with the Vietnam Railways Corporation (VNR), which operates and maintains the existing railway network (while the Vietnam Railways Administration is in charge of planning and development). • According to World Bank (2011), introducing bus rapid transit systems in Vietnam are hindered by institutional and financing concerns, mainly that there is fragmented planning process and that financing for urban transport infrastructure is below targets. • Infrastructure projects in Vietnam generally lack multi-modal corridor strategy due to poorly integrated planning between the different modes. As well, facilitation payments or bribes were necessary to accelerate supply chains. In Vietnam, corruption has been cited as a major challenge for trucking firms; these “facilitation payments” account for about 8% of the total trucking cost while fuel costs account for roughly 65% (Vietnam News, 2014). Supply chain 66

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management does not only concern logistics, but also the mechanisms and linkages that

coordinate stakeholders in terms of information sharing, production processes, among others

(Rich & Narrod, 2010). •

The World Bank report cites that “logistics operations in Vietnam are costly relative to key regional peers like China, Malaysia, and Thailand, primarily because of the prevalence of unpredictability in supply chains” which “increases logistics costs by making it necessary for businesses to carry more inventory than they would otherwise need to manage their everyday operations” (Blancas, et al., 2014). It further elaborates the key root causes of supply chain unpredictability:

o Cumbersome and inconsistently-applied government regulations; o Lack of automation in key trade-related processes such as trade clearance; o Fragmented modal planning in transportation; o A belief among shippers and logistics service providers that facilitation payments are necessary to avoid delays in supply chains; o Low barriers to entry in trucking; and o Major supply-demand imbalances in infrastructure provision. • Fragmented road freight sector can hinder the government from effectively implementing

sustainable transport initiatives, such as eco-driving, truck improvements or logistics

optimisation. In Vietnam, each of the road freight companies, usually of small or medium size, owns about 50 vehicles. Furthermore, the sector consists of “tens of thousands of individual household businesses exist that operate informally” (Business Monitor International, 2011). This fragmentation of relatively small trucking companies can result to difficulty in monitoring, as well as to a lack of efficiency in terms of economies of scale when truck companies will be necessitated to improve their fleet (e.g. retrofitting trucks with low rolling resistance tires, aerodynamic technologies such as roof fairings). Financial

• Financial cost is one of the most typical obstacles to the success of policies that require investments. In addition to administration and allocation of budget, funding sources can be hard to identify, especially regarding urban infrastructures which require massive investments and which may discourage the private sector to participate in the financing of the project. For instance, there are about 1,000 logistics firms in operation in Vietnam but foreign ones dominate the market (Vietnam News, 2014) while the local ones have limited financial capacity to compete. Shifting from road to maritime freight is also hindered by underinvestment (World Bank, 2011). Bus operators in Hanoi and HCMC are subsidized in recent years and were able to increase their service and ridership. In other cities however there are hardly any subsidies, save for a few routes, and the operators are struggling to survive and have a lack of capital to invest in new and efficient vehicles.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector • The World Bank report Winds of Change (Wang, Berrah, Mathur, & Vinuya, 2010), citing Taylor

et al. (2008), defines three main financing mechanisms developed for energy-efficiency

projects: (1) loans and partial loan guarantee schemes operating within commercial banks or as specialised agencies or revolving funds; (2) energy-efficiency and demand-management funds,

financed by a surcharge on electricity consumption (system benefit charge) or a government budget, and managed by utilities or dedicated agencies; and (3) third-party financing through Energy Service Companies (ESCOs). It observes that, for the second mechanism, a number of East Asian countries including Vietnam set up energy efficiency and demand-side management funds. These countries usually face three key issues: (1) where to obtain the funding, (2) who

should administer the funds and implement the energy efficiency/demand-side management programs, and (3) how to ensure effective use of the funds and verify results. • According to ADB (2012), MOT identified the insufficient state budget and other financial sources as among the causes of environmental and social degradation in its Five-Year Plan in October 2009 for inclusion in Vietnam’s 2011-2015 Socioeconomic Development Plan (SEDP). In a developing country such as Vietnam, the priorities of the national and local governments are usually split between ensuring socioeconomic development or poverty alleviation and ensuring road or public transport infrastructure development. For example, planning for biofuel in developing countries must ensure that its energy production will not

threaten the country’s food security or agricultural outputs.

• In a report on private finance for transport in Vietnam, Darko et al. (2015) conclude that, ‘as Viet Nam’s economy has grown, the level of international assistance (in the form of ODA) has declined in absolute terms and relative to GDP, leaving a financing gap for infrastructure projects (including for transport). The government is seeking to fill this, in part through private investment’, and therefore ‘investments in transport are part of specific legislation on the manner in which private actors and investors can engage in different sectors in Viet Nam through Build-Operate-Transfer (BOT), Build-Transfer- Operate (BTO) or Build-Transfer (BT) contracts (Decree 108/2009/ND-CP). Under this legislation, roads, road tunnels, ferry landings, railways, railway tunnels and bridges, airports, seaports and river ports are

highlighted as areas for private sector participation. Under these types of contracts, the participation of government is limited to 49% of the total investment capital of the project. Under this legislation, the central government issues investment licences for private actors to enter into BOT, BTO and BT contracts. Domestic investors do not need to acquire investment licenses for projects of less than VND 15 billion (approximately $714,000).’ ‘The investment law reform included the process of ‘equitisation’ (or partial privatisation) of State Owned Enterprises by selling part of the assets or liabilities to the private sector, transforming the SOE into a JSC.’ However, ‘in spite of stated objectives to develop PPPs in the sector, there is currently limited government capacity to implement these – in terms of both civil servant experience in PPP structuring and mismatched expectations from the public and private sectors around investment in PPPs. As a result, the only PPPs that have thus far been developed in Viet Nam have been in the area of road construction.’

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Capacity

• Addressing climate change through energy efficiency and sustainable transport is a long-term

process and achieving ambitious goals necessarily take years. Renewing urban infrastructures often represents massive and exhaustive challenges, and time to implement projects must be

taken into account. Thus, because of the intrinsic nature of transport infrastructures, the capacity of Vietnam and cities to reverse the GHG emissions process is limited in the short term. • While many initiatives do not directly require a relatively significant financial investment to

commence, the financing of its operation and maintenance and hence the sustainability of the initiative may be a concern, especially when the capacity to enforce standards and regulations is inadequate. In terms of parking management, this can include the need for personnel tasked for eliminating or ticketing illegal on-site parking. • Vehicular inspection and maintenance programs needs capacity for the operation of various technical tools such as on-board diagnostics (OBD) and remote sensing25 which can aid in the implementation of such programs. The policy table in Annex 20 presents some information on the current status of inspection and maintenance. The inspectors and mechanics must also know how to properly calibrate the equipment and maximise the available infrastructure. The lack of capacity of personnel to enforce the standards may lead to the evasion of compliance

and tampering with the vehicle components to “pass” the test. One of the most primary

concerns in vehicle inspection and maintenance is fraud and corruption (Kolke, 2005) as drivers may cheat on tests and/or bribe to pass inspection, and inspectors and mechanics may pocket the bribes (Hausker, 2004).

Social awareness and education • The failure of implementation associated with the regulation of old trucks and buses is a good example of the need to raise awareness on existing laws but also on the necessity to engage

individuals in climate change mitigation. Technological advances for the freight sector such as tire standards, aerodynamic technologies, and logistics brokerage platforms to maximize haulage efficiency have not yet fully penetrated the freight sector of Vietnam for emission reduction purposes. For instance, the installation of global positioning systems (GPS) or black boxes in automobiles currently do not include any specific inclusion of fuel consumption parameters. • Many Vietnamese citizens are switching from two-wheelers to passenger cars. For the promotion of biking as an alternative mode of transport, not only would it be necessary to provide bike lanes but it would also be necessary to educate the motorists and vendors not to encroach on such lanes.

25 OBD systems are micro-computers commonly installed in the new vehicles which monitor the performance of the major components of a vehicle such as the chassis and the body, in addition to complete emission controls. This tool provides vehicle owners an early sign of vehicular malfunction. Remote sensing, on the other hand, uses a beam of radiation projected across a parcel of air on the road to investigate emissions from vehicles, allowing for the identification of gross polluters. 69

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Implementation and enforcement

• Regulation of old trucks and buses is another good example of implementation obstacles.

According to the Vietnam Register, about 70,000 automobiles had passed their expiry date since the beginning of 2011 and were no longer considered road worthy–but the majority were

still in use. Furthermore, 40,000 trucks and nearly 30,000 buses were considered no longer roadworthy but only 10,400 had been impounded. Reasons for implementation failure are twofold: vehicle owners are ignorant of the law and punishments were not strict enough to deter potential law breakers. As such, fake documents are often used by vehicle owners to by- pass the law in the country (Vietnam News, 2011).

• Implementation of vehicle emission targets has been reported inefficient by Vietnam Register. The existing and future Euro regulations are and will be applied to all vehicles of the business manufactured in one year, which implies that businesses have to adjust engineering, technology but also production and importing plans to comply to the new standards. However, lack of financial measures to incite businesses to make the necessary changes have jeopardised the implementation of the policy. Vietnam Register has in this perspective proposed three complementary solutions: allow compensation between years in the stage, allow compensation among businesses and withdraw quality certificate or stop granting Stamps or Certificates to finished vehicles (Vietnam Register, 2013).

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5 Activities by international organisations

International support is provided for Vietnam in the form of funds and technical cooperation. As Darko et al. (2015) notes, ‘ODA funding for the transport sector increased significantly in between

2009 and 2014, with ODA mirroring government investment and focusing on road transportation. Japan, Korea, France, ADB and the World Bank are the primary providers of ODA in the sector’. Figure 22 shows that transport finance in Vietnam comes mainly from national budget, but international sources such as ODA, fast-start climate finance and others important too, mostly for rail and water transport.

Figure 22: International support for transport in Vietnam Source: Darko et al. (2015)

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Most of the key international organisations also assist Vietnam with the development of the sustainable transport policies/plans/projects. Today, a variety of projects on transport

infrastructure development are under preparation, focusing on road and bridge building, especially urban trams, BRT and subways for big cities like Hanoi, Danang and HCMC. Without claiming comprehensiveness, major projects in Vietnam are enumerated in Table 25. Table 25: Donor activity on monitoring of policies Passenger Freight Transport ADB ADB Demand - Tolled expressway to reduce travel and to ease - Tolled expressway to reduce travel and

Management congestion on roads connecting to the port area: In to ease congestion on roads connecting (TDM) 2008, ADB has approved a USD 410-million loan to the port area. for the construction of a 51-km tolled expressway - Roads, ports, railways to enable linking HCMC and Dong Nai Province to ease the unrestricted passenger and freight congestion within HCMC and those 29 roads connecting the centre of HCMC and the port transport. area. 26 JICA - JICA signed the Japanese ODA Loan JICA agreements in December 2013 which - Loans have been made for projects on Hanoi city includes the Hanoi City Ring Road No. 3 urban railway construction, and aids have been Construction Project to facilitate the granted for the development of traffic control logistics with the neighbouring industrial system for expressway in Hanoi. 27 complexes and areas such as Hai Phong SMBC, Citibank Japan City. 30

- In early 2012, Vietnam Development Bank signed World Bank an agreement with Sumitomo Mitsui Banking - The Haiphong Urban Transport Project (SMBC) and Citibank Japan to secure a USD 270- aims to improve urban roads to alleviate million loan for the 6-lane Hanoi-Haiphong port and inter-city traffic movements. Expressway project features an intelligent traffic The Bac Son–Nam Hai East–West Link control system. 28 is expected to relieve residents along the REMON - Real Time Monitoring of Urban Transport existing section of the corridor of heavy freight traffic. 31 - Solutions for Traffic Management and Urban Development in Hanoi, http://www.remon- hanoi.net/en

Modal shift JICA ADB - Strengthening of public transportation: Public - Railways developed: Railways are transportation in the capital is being improved developed to ease transport of goods. Its through the Project for Improving Public goals include the completion of the Transportation in Hanoi32, a Technical Assistance infrastructure improvements enabling Project related to ODA loan. Other projects include unrestricted passenger and freight the study of the implementation of integrated transport45. UMRT and urban development for Hanoi33, Norway (NORAD) strengthening of the capacity of regulator and the - Technical and management training for establishment of operation and maintenance development of shipbuilding industry: 34 company of metropolitan railway lines in Hanoi. Norwegian Agency for Development Loans have also been made for HCMC urban Cooperation (NORAD) co-funded railway construction, particularly Line 1: Ben Vietnam Shipbuilding Training Project, Thanh-SuoiTien.35 as executed by state-owned Vietnam ADB, KfW, EIB Shipbuilding Industry Group, known as - Railway projects: ADB provided Technical VINASHIN, from 2008-2013 to Assistance to HCMC to advise their People's contribute to the development of the Committee on the integrated development of their shipbuilding industry in Vietnam to 72

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Passenger Freight

first 2 MRT lines. The development of urban rail ensure its products satisfy the

MRT, specifically the MRT Line 2, facilitates public requirements of international rules and transport access and connectivity in six central standards46. districts of HCMC, promotes a modal shift from private to public transport, reduces vehicle trips and Administered by the World Bank, the the need to expand road network, and reduces global, multi-donor technical assistance greenhouse gas emissions. The fund will be trust fund Energy Sector Management provided by ADB, German Development Bank Assistance Program (ESMAP) funded a (KfW) and European Investment Bank (EIB)36. study to analyse the nature of the main The three organisations will also help finance Line freight movements by land and by coastal 537. shipping, among others, with the ultimate

objective of shifting some of the main AFD, ADB north-south freight movements from - A loan is provided for a national railroad trucks to coastal vessels47 rehabilitation project between Yen Vien in the outskirts of Hanoi and Lao Cai. 38 AFD, General Directorate of French Treasury, FFEM, EIB, ADB - These organisations are funding Line 3: Nhon-Ha Noi Station, covering 12.5 km between the Nhon terminal to the west and the Hanoi central train39. - ADB provided Technical Assistance to develop an

integrated public transport system in 5 districts of

Hanoi that will support effective utilisation of Hanoi Metro Line 3. The project will provide infrastructure for improving accessibility to Metro Line 3 stations, implement feeder bus links, a public transport management system, integrated multi- modal stations with "park and ride" facilities, as well as a comprehensive parking plan for the city40. World Bank - Hanoi Urban Transport Development Project includes a Bus Rapid Transit (BRT) component which will support the development of segregated

bus lanes and bus priority41.

Additionally, one of the components of the Haiphong Urban Transport Projects aims to improve public transportation services along the Tam Bac-Kien an urban corridor, including measures to strengthen institutional development for public transport management, piloting of transformative approaches to fleet management, acquisition of new buses, and upgrading of infrastructure and facilities42 Da Nang Sustainable City Development project43 consists of 4 components, including a bus rapid transit development, urban strategic roads. In 2012, the central city of Da Nang has approved a project to open three more BRT lines in the 2012-15 period with an investment of around USD 37 million sourced from ODA funding44.

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Passenger Freight

Energy GIZ: ADB-GMS50:

efficiency - Assist in developing a national action plan on energy - MRV for the NAMAs in freight sector efficiency and climate change in the transport sector, and develop a NAMA proposal for fuel - Eco-driving, financial channel

efficiency policies assessment, truck retrofitting and monitoring of energy efficiency measures - KFW is supporting Da Nang in providing in trucks environmentally friendly buses for its citizens. A fleet of 75 buses that meet international environmental standards have been developed, including exhaust fumes that come up to the Euro 4

standard. They were put in services in 2011. The project was also coupled with the BRT program for which KfW also brought support. World Bank - Through ESMAP, a bus energy efficiency study was conducted which included the assessment on the energy efficiency status of the current bus services (including bus routes planning and bus operations), identification critical areas for improvement and identification of cost-effective options for improving energy efficiency of the bus services48. Clean Production and Energy Efficiency Project: The

third component of the project is capacity-building for program management, and monitoring and evaluation. This component will support capacity- building of MOIT’s Energy Efficiency and Conservation Office (EE&CO) through provision of expert assistance and training activities in implementation, and monitoring and evaluation (M&E) of various energy efficiency projects, programs, and policies49. General JICA, AFD - Support for GHG inventories and programs: JICA signed an agreement with MONRE for "Capacity-building for National Greenhouse Gas Inventory in Vietnam" project to enhance the capacity of Vietnam in periodically and systematically collecting and compiling necessary data for

national GHG inventories, and managing quality assurance/quality control of GHG inventories for key sectors51. - JICA has also committed the Support Program to Respond to Climate Change (SP-RCC) to support the implementation of the National Target Program to Respond to Climate Change (NTP-RCC). JICA likewise supports the law on energy efficiency and conservation which promotes the introduction of the energy conservation labelling system. AFD provided co- financing52. AFD - AFD assists in implementing mitigation measures, particularly in reducing GHG emissions, as well as climate change adaptation strategies, and understanding the emissions generated and reduced of projects through the use of a carbon footprint methodology designed by AFD. In the period of 2006-2012, for instance, 12 projects on mitigation and adaptation amounting to over USD 470 million were committed to Vietnam, enough to mitigate 1.18 MtCO2 of emissions/year53. JICA - Development of master plan studies and capacity-building: JICA supported Da Nang City

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Passenger Freight

Development Master Plan Study which includes the city’s development through 2025, an urban

traffic program and an overall environmental sustainability program. An urban database will be maintained and training be provided for relevant agency personnel to improve their administrative 54.

capabilities - Among other technical cooperation projects are capacity-building for national GHG inventory, for road maintenance, and for planning nationally appropriate mitigation actions (NAMAs) in Vietnam for UNFCCC registry and carbon offset mechanism55. Australia, ADB - Improvement of Mekong trade and transport facilitation: Australia has committed to assisting

Vietnam develop infrastructure, and will advocate more for greater private sector involvement in delivering infrastructure. The Australia–Vietnam Joint Aid Program Strategy 2010–2015 aims to increase economic activity in targeted regions (including cross-border). Together with ADB, Australia will continue to improve Mekong trade and transport facilitation through activities such as capacity-building for border officials and relevant line agencies, building on their support to the Cross Border Transport Agreement, designed to free the legal movement of goods across borders in the sub region by streamlining licensing, customs, among others56. GIZ - The GIZ project ’Creation of an overarching framework for nationally appropriate mitigation actions’ was set up to support Viet Nam in four main areas: Establishing the NAMAs National Coordination Unit within MONRE, to coordinate and advise on the development and implementation of NAMAs; Identifying and developing two bankable NAMAs, as well as guidelines for NAMA development and implementation; Developing a national system for

measuring, reporting and verifying GHG emissions data, including an integrated MRV system for sectoral NAMAs; Strengthening the negotiating capacities of Vietnamese delegations at international climate change negotiations57 EIB - European Investment Bank (EIB) granted €150 million loan to the Government of Vietnam to finance projects that will contribute to the mitigation of climate change58 World Bank - World Bank supports the government in implementing Green Growth Strategy, using the EFFECT model provided by ADB in 2012 to assess various low-carbon development options in the transport sector. This is aimed to help the government in identifying priority interventions in 59 the short- to medium-term that supports their long-term strategy up to 2040 .

EU: - Focusing on establishing of MRV system for climate change action.

Sources: 26 http://www.vietnambreakingnews.com/2008/10/adb-agrees-410-million-for-southern-expressway/ 27 http://vietnamnews.vn/print/221210/japan-loans-us270m-for-ha-noi--hai-phong-expressway-project.htm 28 http://vietnamnews.vn/print/221210/japan-loans-us270m-for-ha-noi--hai-phong-expressway-project.htm 29 http://www.vietnambreakingnews.com/2008/10/adb-agrees-410-million-for-southern-expressway/ 30 http://www.jica.go.jp/english/news/press/2013/2013/20131224_01.html 31 http://www.worldbank.org/projects/P111548/vietnam-haiphong-urban-transport-project?lang=en 32 http://www.almec.org/projects/d01.html 33 http://www.jica.go.jp/vietnam/english/office/topics/pdf/press0807.pdf 34 http://www.jica.go.jp/vietnam/ku57pq00000468pr-att/A3_English.pdf 35 http://www.jica.go.jp/vietnam/english/office/topics/c8h0vm000001sp52-att/press120828_en.pdf 36 http://adb.org/projects/details?page=details&proj_id=39500-012, http://www.adb.org/sites/default/files/linkeddocuments/39500-02-vie-ffa.pdf 37 http://tuoitrenews.vn/society/7926/adb-eib-fund-hcm%E2%80%99s-metro-line-5 75

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Sources:

38 http://www.afd.fr/lang/en/home/pays/asie/geo-asie/afd-vietnam/cac-du-an-cua-afd-tai-viet-nam/transports/yen-vien-lao-cai- railway-line-upgrading-project 39http://www.afd.fr/lang/en/home/pays/asie/geo-asie/afd-vietnam/cac-du-an-cua-afd-tai-viet-nam/transports/hanoi-pilot- metro-line-no-3-nhon-hanoi-train-station , http://adb.org/projects/details?page=details&proj_id=40080-013

40 http://www.adb.org/news/adb-loan-boost-connectivity-services-ha-noi-s-metro-line-3 41 http://www.worldbank.org/projects/P083581/hanoi-urban-transport-development-project?lang=en 42 http://www.talkvietnam.com/2012/12/start-building-resettlement-housing-areas-under-haiphong-urban-transport-development- project/ 43 http://www.worldbank.org/projects/P123384/danang-sustainable-city-development-project-scdp?lang=en 44 http://en.baomoi.com/Info/Da-Nang-to-open-more-bus-lines/3/311524.epi 45 http://www.vietnambreakingnews.com/2008/10/adb-agrees-410-million-for-southern-expressway/ 46 http://www.dnv.com/news_events/news/2006/vietnamlookingtothetop.asp?Edit=1 47 https://esmap.org/sites/esmap.org/files/activities/P119287.pdf 48 https://www.esmap.org/taxonomy/term/250?page=2 49 http://documents.worldbank.org/curated/en/2011/06/14415985/vietnam-clean-production-energy-efficiency-project 50 http://www.gms-eoc.org/resources/gms-green-freight 51 http://www.jica.go.jp/vietnam/office/information/press/pdf/press2010/201007_03e.pdf 52 http://www.jica.go.jp/vietnam/office/information/press/pdf/press2010/201007_03e.pdf 53http://www.vinacomin.vn/en/news/Home-News/AFD-continues-to-support-Vietnam-s-climate-projects-998.html 54 http://www.jica.go.jp/vietnam/english/activities/activity13.html 55 http://www.jica.go.jp/vietnam/office/information/press/pdf/press2010/201007_03e.pdf 56 http://dfat.gov.au/about-us/publications/Documents/vietnam-strategy-2010-15.pdf 57 https://www.giz.de/en/worldwide/26246.html 58http://www.eib.org/infocentre/press/releases/all/2012/2012-150-vietnam-eur-150-million-loan-for-climate-change- mitigation.htm 59 https://www.esmap.org/node/2023

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6 Policy recommendations

Improve Currently consumers do not value fuel economy highly when purchasing vehicles, with two standards on limit of fuel consumption for passenger cars and two-wheeled motorcycles and mopeds are voluntary. Improving the fuel efficiency of new vehicles (the short term option with the highest mitigation potential) requires thorough analysis of the vehicle market, reliable test procedures and discussions among stakeholders in order to ensure the fuel economy standards are fair and deliver real savings compared to business-as-usual. These standards should be proposed

and regularly strengthened in order to promote manufacturer innovation and the creation of new efficiency solutions. It also helps to enhance the competitiveness between the manufactures in the market. Vietnam has started discussions on standards for heavy-duty vehicles, but policy discussions on energy-efficiency standards, labelling or information for tyres, which could save up to 3% of energy, could be initiated. For inspection and maintenance, more stringent enforcement of polluters, updating test procedures and making use of the on-board diagnostics would help making the programme more effective.

Avoid and Shift

Effective policy options include CO -based vehicle taxation (also for ‘improve’), market-based

2 mechanisms like auctioning titles, congestion charges and parking charges, and requiring road users to pay for infrastructure and services. In addition, transit-oriented development and other integrated land-use planning concepts are needed to further reduce the need for motorised travel and make the alternatives attractive. This requires long-term planning and discussion among a range of public and private stakeholders. Achieving the public transport targets further requires substantially improving mass public transport infrastructure, particularly bus rapid transit and rail systems. At least equally important is a focus on quality of public transport: bus frequency, service, reliability, attractiveness and interconnectivity between modes. Such multi-modal planning may require increased cooperation between national and international organisations, and an urban transport authority for management, planning and coordination could be considered. Current policies, governance structures and funding may need improvement and strengthening to achieve the said targets. This includes a national public transport policy which gives financial and technical assistance to cities and provinces. At the local level, bus reform (such as done in Hanoi), bus route optimisation, BRT, and performance-based operational subsidies to operators may be needed. As part of a comprehensive ‘push and pull’ strategy, the pricing strategies mentioned above, together with measures and infrastructure for walking and cycling, and connectivity between different public transport modes are key in increasing ridership. This could include low-emissions zones, pedestrianisation of inner city roads and dedicated bicycle lanes in urban areas; this could help reverse the declining trend in modal shares of walking and cycling. 77

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Freight and Logistics

Useful interventions are in the area of enhancing logistics such as reducing empty backhauls, improving the routing of distribution system, clustering destinations together, setting up an online freight exchange (clearing house), and constructing logistics centres efficiently. Moreover, the private sector itself has a large role to play in improving freight and logistics, e.g. by providing technology such as radio frequency identification tags, global positioning system and vehicle routing software which are necessary to optimise street networks (Punte et al., 2010). Introduction of green freight labelling schemes and other information and communication instruments can also be considered.

Data, Indicators and Monitoring Progress on sustainable transport often starts with data, which creates awareness and corresponding action. Local air pollution is example of a key issue that can expedite transport policies, as this is visible directly to citizens. Even though energy efficiency and climate change are less ‘visible’ problems, they can be mainstreamed into transport policy by monitoring appropriate indicators. These indicators can include macro-level energy or environmental performance indicators related to transport (e.g. MJ/vkm, kgCO2/capita, gCO2/p-km or t-km, total tons CO2 for the transport sector), infrastructure or services indicators (km bike lines, #buses/capita), as well as project-specific or activity-specific indicators. Such a set of indicators help to get a more complete picture of the climate change impacts of transport. It thereby supports, the development of baseline emission projections (which exhibit large uncertainty), future BURs, mitigation potential of transport options (e.g. in the context of the INDC) as well as MRV of NAMAs. Currently policy monitoring takes place based on policy-specific transport indicators but is not necessarily made public. A communication strategy beyond climate change related issues may be helpful to inform the public about the progress towards sustainability. Improvement of data quality and availability for annual vkm and fuel efficiency by vehicle and fuel

type, modal split (including NMT), vehicle fleet composition, average speed and occupancy

rates/load factor are needed for monitoring energy and CO2 of the transport sector; and can be used for assessing progress towards other transport policy objectives such as modal shift, motorisation, air quality, logistics optimisation and fuel diversification. Comprehensive travel surveys at the national level, which can be collected and reported by GSO in the statistical yearbook, and fuel efficiency information in the vehicle type approval process, can be considered, as well as including transport questions in annual GSO surveys. In order to move towards a more comprehensive monitoring system, increased collaboration between different public and private organisations that are already collecting data is required, as well as a central management system with consistent data formats, and incentives to make reporting on indicators an integral part of policymaking and an overall sustainable transport strategy.

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ASEAN

The suggestions and recommendations in this report can also been seen in the ASEAN regional context, in particular given that the successor of the ASEAN Strategy Transport Plan 2011-2015 will have a significant focus on sustainable transport policies, capacity building and data systems.

We observe a momentum within many of the ASEAN Member States as well, e.g. for fuel economy standards and incentives, green freight, and public and non-motorised transport. Exchange of experience and success stories between different countries is essential in faster developing and implementing more effective policies.

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

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Annexes

Annex 1: Emissions inventory for motorcycles and light duty vehicles Motorcycles are the main source of emissions in Hanoi and HCMC especially for CO, HC, and

NOX. In the capital city of Hanoi, for instance, Kim Oanh, Phuong & Permadi (2012) estimated

that the motorcycle fleet in Hanoi emitted 158.2 kt of CO, 51.5 kt of VOC, 9.5 kt of NOX, 2.4 kt

of PM10, 964.3 kt of CO2 and 0.17 kt of SO2 in 2008. Although the majority of the motorcycles are relatively new (3.6 years) and had four-stroke engines, the study found that “only 6% was equipped with catalyst exhaust control devices” and “about 35% of the fleet did not comply with any Euro standards”26. In another emission study for in-use motorcycles in 2006-2007, it was found that 59% of the 1,675 surveyed motorcycles in Hanoi and 52% of the 1,627 surveyed in HCMC exceeded the emission limit of 4.5% CO and 1,200 ppm HC (Do, 2011) Another study by Tung et al (2011) developed emissions inventory for motorcycles and LDVs in Hanoi from 2007 to 2009. The emissions were derived by combining vehicle population data, developed vehicle speciﬁc emission factors and VKT information from the traffic surveys. Their

results show that contribution of motorcycles to CO, HC and NOx emissions were much higher compared with the LDVs. The study notes that the difference in the results with Kim Oanh, Phuong, and Permadi (2012) is because the base emission factors and speed adjustment factors used in the IVE model by the latter were based on the LA4 driving cycle while their study developed and used local emission factors. Emission inventory for motorcycles and LDVs in Hanoi, 2005 to 2009 Pollutants 2005 2006 2007 2008 2009 Motorcycles CO (ton) 104,355 114,677 126,144 - 150,729 CO2 (ton) 277,362 304,795 335,275 - 400,617 HC (ton) 8,656 9,512 10,464 - 12,503 NOx (ton) 1,389 1,526 1,678 - 2,005 FC (m3) 204,336 224,547 247,001 - 295,140 LDVs CO (ton) - - 2,320 3037 3,862

CO2 (ton) - - 435,078 554,695 706,477 HC (ton) - - 250 319 406 NOx (ton) - - 476 631 790 PM (ton) - - 9 17 19 FC (m3) - - 189,941 242,214 308,487 Source: Tung, Tong, Hung, & Anh, 2011. Development of emission factors and emission inventories for motorcycles and light duty vehicles in the urban region in Vietnam

26 The study estimated the total emissions (running, start and evaporative) for the active motorcycle population in 2008 using the International Vehicle Emission (IVE) Model with 1,000 survey questionnaires, GPS monitoring for driving patterns as well as traffic videos. The data collection covered three typical road types, namely highways, arterials and residential streets, in three zones of the city. It assumes a total annual VKT of 15.8 x 109km and a total number of starts of 3.8 x 109. More information is available from the published paper: Kim Oanh, N.T., Phuong, M.T.T., and Permadi, D.A., (2012). Analysis of motorcycle fleet in Hanoi for estimation of air pollution emission and climate mitigation co-benefit of technology implementation, Atmospheric Environment, 59, Pages 438- 448. 91

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Annex 2: Forecast of energy demand in Vietnam by sector, 2000-2025 (in kTOE)

2015 2020 2025 2030

Sectors 2010 Base Base Base Base Low High Low High Low High Low High case case case case

Industry 17497 24895 25419 26440 33647 35407 37680 43771 46790 52162 55301 59881 70127

Agriculture 612 762 769 780 855 870 882 919 946 967 951 986 1007

Transportation 11139 15961 16322 16651 23460 25142 26241 32581 36136 39036 45139 51488 57721 Commercial and Service 1754 4588 4609 5209 9314 9492 10852 15589 16090 19073 23645 24661 30457

Household 16893 18783 18805 19069 20511 20641 21016 22496 22868 23477 25704 26524 27575

Non-commercial 1209 1240 1240 1240 1271 1271 1271 1303 1303 1303 1336 1336 1336

TOTAL 49104 66229 67164 69389 89058 92823 97942 116659 124133 136018 152076 164876 188223 Note: This table provides the projections that reflect GDP growth rate and population growth rate. Source: Vietnam Institute of Energy, Power Development Plan VII, 2010

Annex 3: Three groups of potential climate change mitigation opportunities in the transport sector: Fuel switch, modal shift, and efficiency improvement A background paper on Potential Climate Change Mitigation Opportunities in the Transport Sector in Vietnam prepared by the World Bank in 2009 discusses the GHG emission reduction potential from fuel switch, modal shift, and efficiency improvement. The study notes that these estimates “were based on the sector structure over the time span of 2010 and 2015 and used CDM and IPCC methodologies where available and local emission factors where available.” The results of different studies vary based on the methodologies, assumptions, forecasts, emission factor of Vietnam’s power grid, and baseline used, among others.27

Fuel switch policies notably include introduction of low-emissions vehicles (LPG, CNG, electric and hybrid technologies) into commercial vehicle fleets, and use of biofuels in the transport sector. If LPG, CNG and electric vehicles have already been introduced (to some extent) in Vietnam, hybrid vehicles are currently not available in this country. The World Bank study in 2009 illustrates the GHG emission reduction potential from the introduction of low-emission vehicles into the car and motorcycle fleets. It shows that, when 100% of the car fleet in 2010 would switch to LPG, emission reduction could reach 434,162 tCO2e/year.

27 For further information on the methodologies used: World Bank. (2009, May).Potential climate change mitigation opportunities in the transport sector in Vietnam: Background paper. Retrieved November 3, 2013, from Washington, DC: World Bank: http://documents.worldbank.org/curated/en/2009/05/13160223/potential-climate-change- mitigation-opportunities-transport-sector-vietnam-background-paper 92

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Estimated GHG emissions reductions from use of low emission vehicles in Vietnam (tCO2eq/yr) Source: World Bank, 2009 Modal shift refers to the progressive replacement of road use by lower GHG emitting modes such as railways and inland waterways, as well as the increased use of public transportation in cities. The impact on GHG emissions would be less significant than fuel switch but remains nonetheless central given the figures:

Estimated GHG emissions reductions from modal shift (tCO2eq/yr) Note: The assumptions made for the calculations include the following emission factors: 104 g/ton-km for diesel-powered freight transport (trucks); 42 g/ton-km for inland waterway transport; 25 g/ton-km for diesel-powered train. Emission reductions assumed include the following: 98 g/ton-km from the shift from diesel-powered truck to waterway transport; 115 g/ton-km from the shift from diesel-powered truck to diesel-powered train; 16.0 billion ton-km in road freight traffic. Source: World Bank, 2009

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Efficiency improvement refers to the improvement of traffic management and developing

infrastructures. Overall, if these three main strategies are combined, emissions could be reduced by millions of tons of CO2 per year, depending on scenarios. The table below illustrates some examples.

Selected mitigation opportunities in Vietnam Intervention and Feasible Medium-Term Major Theoretical WB Studies/Projects

(2015) Reduction Potential Barriers Emission Reduction Introduction of 100% introduction of Regulatory: Both standard for

electric electric motorcycles in five major cities electric motor cycles and regulatory motorcycles (HCMC, Hanoi, control on the use of motorcycles (5.9 HaiPhong, Danang and Can Tho) are key driving factors. Market: A

MtCO2e/yr) (2.3 MtCO2e/yr) large enough demand is necessary to increase demand Biofuel E20 Introduction of E20 to substitute for Regulatory: Program (20% gasoline used nationally using the normally necessitates ethanol planned production capacity for mandatory blends or other gasoline) in bioethanol (equivalent of 1% of government fuel price control vehicles gasoline supply) Technology: Introduction of (2.6 (0.1 MtCO2e/yr) technology and increase in MtCO2e/yr) processing capacity is needed Modal shift Shift of 10% of road freight traffic to Technical: Lack of infrastructure Bank supports a number from inland waterways through improved including logistics and intermodal of projects that finance road to inland waterways, infrastructure, and other linkages. Financial: inland waterways, such waterway freight incentives Underinvestment in waterways as a as Inland Waterways and (2.2 tCO2e/yr) (0.22 tCO2e/yr) mode of transport Port Rehabilitation Project (P004843) Modal shift Shift of 10% of road freight traffic to Technical: Lack of from railways through improved infrastructure including road to rail infrastructure logistics and intermodal freight (0.26 tCO2e/yr) linkages. Financial: Requires large (2.6 tCO2e/yr) infrastructure investments Modal shift Shift of 10% road freight traffic to Technical: Lack of Bank supports a number from coastal shipping using larger capacity infrastructure including of projects that finance road to coastal vessels and improved infrastructure logistics and intermodal inland waterways, such freight (0.08 tCO2e/yr) linkages. Financial: as Mekong Delta (0.8 Underinvestment in coastal Transport Infrastructure MtCO2e/yr) shipping as a mode of transport Development Project (P083588) Bus Rapid City program for construction of BRT Institutional: Fragmented planning Hanoi Urban Transport Transit in system for Hanoi and Ho Chi Minh to process. Financial: Financing for Project (GEF) five major cities replace 30% of motorcycles and 30% urban transport infrastructure is (P083593); possible (0.57 tCO2e/yr) cars in the city (0.53 tCO2e/yr) below targets support to BRT in Da Nang Passenger EU standards (from five Regulatory: Fuel efficiency standards vehicle years ago) met in Ho Chi Minh and are not in place fuel efficiency Hanoi (2.0 MtCO2e/yr) standards (3.7 MtCO2e /yr) TOTAL: 18.37 TOTAL: 5.49 MtCO2eq/yr MtCO2eq/yr Note: The document by The World Bank, “Climate-Resilient Development in Vietnam: Strategic Directions for the World Bank,” (http://siteresources.worldbank.org/INTVIETNAM/Resources/CCStrategyVNFinal-Eng.pdf ) provides the methodological basis for the calculation of theoretical emission reduction. Source: The World Bank, 2011

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Annex 4: Scenario Development

The term “backcasting” means setting a goal first and then deriving necessary actions to reach there. The Backcasting Tool, which is used to formulate long-term national strategies, requires setting a specific target of CO emission from the transport sector in a specific year, and evaluating

2 policies to reach the goal. In this study, the target set is 0.33 tCO2 per capita for the transport sector 28 by the year 2050 (ITPS, 2014) while the current emission is 0.37 tCO2 per capita (WBI, 2011 & IEA, 2011). Meanwhile, the EFFECT model forecasts GHG emissions from a range of policy options, and forecasts energy balances and amounts of energy generating or consuming assets in a country or sector.

The policy packages used in the Backcasting Tool, classified according to the Avoid-Shift-Improve framework, are translated to meet the data input requirements, such as in terms of mode shift rates and technology penetration rates. The Tool then assesses the impacts and the mitigation potential of these policy packages on transport CO2 emissions. The Backcasting Tool recognises that the distance travelled per vehicle per year will differ in each region and averages the km/year for each mode throughout the study period of concern. In contrast, the data requirement for the EFFECT model is much more comprehensive, involving statistics on vehicle mortality, vehicle usage and cost of ownership, average price of new vehicles

(further split into emission standard, fuel type and system), average age of maritime freight fleet

usage, specifications of freight vehicles, as well as the ratio of new vehicles in each on-road vehicle category, average age of vehicles on retirement, years of zero mortality for each vehicle type, railway annual scrap page rate, among others. The overview of the input data requirements, the simulation results for the business-as-usual scenario and for the alternative scenario is presented in the table below.

28 Based on the calculations done using the 2050 projections. OECD/IEA (2009). Transport, Energy and CO2: Moving toward Sustainability. OECD/IEA, 2009. 95

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Overview of Backcasting Tool and Energy Forecasting Framework and Emissions

Consensus Tool

Energy Forecasting Framework and Emissions Backcasting Tool Consensus Tool (EFFECT) Period of study 2010 as the base year; 2005–2050 2010 as the base year; 2010–2040

Input data Socio-economy: GDP per capita, sectoral Socio-economy: GDP per capita, sectoral contribution to GDP, contribution to GDP, population growth rates (by population growth rates (by urban and rural, and by age group). urban and rural, and by age group). Transport: Plans and policies, trip length, passenger- and ton-km

Transport: Plans and policies, trip length, passenger- travelled, share of ethanol and biodiesel in gasoline and diesel and ton-km travelled, mode shares. Travel consumption characteristics in primary cities, urban cities, rural • Road transport: private car ownership, vehicle sales and areas. Inter-regional and intra-regional transport. population (historic sale data, sales annual forecast by vehicle

• Road transport: vehicle population, distance type, vehicle mortality), vehicle usage and cost of ownership (mix travelled per vehicle, load factor, fuel efficiency, of private and business use, amount of goods carried), average

CO2 emission coefficient speed, fuel consumption, vehicle technology, average price of • Rail transport: total volume of transport, fuel new vehicles, among others. efficiency, CO2 emission coefficient • Rail transport: average passengers, average annual mileage • Maritime transport: energy consumption (in per passenger car, locomotives scrappage rate, propulsion and litres), fuel efficiency, CO2 emission coefficient non-propulsion energy per passenger-km, among others; • Air transport: total volume of transport, fuel average revenue freight-tons per wagon, average annual mileage efficiency, CO2 emission coefficient per wagon, propulsion energy per ton-km, scrappage rate of locomotives, switchers, among others • Maritime transport: coastal freight fleet usage and specification; inland freight and passenger fleet population and specification, operational speed, trip length; freight mix, vessel loading, annual operating time, cargo handling rate. Low-carbon • Avoid: Pricing regimes, ICT, improved travel • National transport development planning: Integrated low Options awareness, freight transport subsidiarity, freight carbon and transport planning, improved infrastructure system, dematerialisation, urban and land-use planning proper modal split, promotion of multi-modal transport and • Shift: The infrastructure development for―and the logistics promotion of the use of―buses and bus rapid • Urban transport development: Public transport promotion, transit systems, as well as of rail transit systems private vehicle control. for both passenger transport and freight. • Use and promotion of cleaner fuel: Fuel quality improvement, • Improve: CNG vehicles mass supply and use of cleaner fuel, diesel and biodiesel for electric generators, promotion (through economic measures such as recycle energy at railway stations, policies on emission incentives), and the development and promotion management, policies on replacement of old vehicles of biofuels. • Raise public awareness of low carbon in transport sector: This includes efficient driving training.

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Annex 5: Factors under the ASIF component

A. Activities S. Mode Share I. Fuel Intensity F. Fuel Choice (pkm=trips x km) (% pkm) (quantity per pkm) (emission per quantity)

Determinants Determinants Determinants Determinants • Population • Income • Engine type • Fuel type = • Demographics x • Motorisation rate x • Vehicle load x • Engine type • Income • Infrastructure • Vehicle age • Vehicle tech Emissions • Economy • Service provision • Congestion levels • Vehicle age • Urban form • Relative costs • Capacity mix • Temperature • Urban form • Urban form • Altitude

Source: Clean Air Asia, 2012. Accessing Asia: Air Pollution and Greenhouse Gas Emissions from Road Transport and Electricity Clean Air Asia (2012) published a set of guidelines to identify air pollution and GHG emissions indicators for road transport and electricity sectors. Based on the ASIF framework, data availability of input parameters for each country can be identified and then measurement method for each indicator can be suggested. The figure on the next page illustrates the calculation flowchart and related data used to estimate emissions using the ASIF approach.

Flowchart to estimate emission from road transport Source: Clean Air Asia, 2012. Accessing Asia: Air Pollution and Greenhouse Gas Emissions from Road Transport and Electricity

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Annex 6: Summary of road traffic count*

Car/ Mini Large Pick-up & 2-axle, 3-axle 4-axle Motorc Province Road Bicycle Van Bus Bus 4W truck 6Wtruck truck truck ycle HaTay-PhuTho NH32 816 130 137 62 707 126 103 2,463 815 VinhPhuc-PhuTho NH2 1,605 454 721 159 2,199 418 459 9,671 1,734 ThaiNguyen-Hanoi NH3 1,687 424 494 122 1,955 286 254 4,877 778 Hanoi-B.Ninh NH18 1,954 666 364 116 2,234 802 729 2,310 466 Hanoi-V.Phuc NH2 3,283 801 875 1,190 2,672 1,104 775 9,834 933 Hanoi-B.Ninh NH1(n) 1,920 177 478 1,192 2,263 669 419 14,810 2,780

Hanoi-B.Ninh NH1(s) 5,893 1,498 972 254 4,032 552 605 10,780 187 Hanoi-HaTay NH32 804 148 244 306 1,115 169 40 24,871 5,035 Hanoi-HaTay H-HL 4,529 621 476 776 3,359 1,418 446 25,400 979 Hanoi-HaTay NH6(e) 12,807 1,242 2,661 1,071 3,765 971 675 143,944 13,897 Hanoi-HaTay NH6(w) 2,535 583 334 499 2,358 798 347 29,234 3,800 Hanoi-HungYen NH5 8,952 1,946 2,269 1,937 7,608 2,317 2,461 29,114 1,633 Hanoi-HaTay NH1 1,204 204 504 360 2,055 185 196 24,815 2,976 BacNinh-BacGiang NH1 528 67 269 156 753 656 12,633 2,914 2,487 BacNinh-BacGiang NH1 3,082 1,238 705 248 2,965 366 501 8,105 116 HaTay-HoaBinh NH6 1,737 657 228 207 1,650 397 298 7,145 1,069 HaiDuong-BacGiang NH37 145 39 42 32 474 52 48 2,418 548 HaiDuong-QuangNinh NH18 2,082 625 935 72 1,860 210 448 5,369 1,441 HaiPhong-QuangNinh NH10 (n) 1,629 356 747 124 2,025 329 686 5,388 394 H. Duong-H.Phong NH5 4,102 780 766 834 3,184 700 3,224 10,212 1,280 H.Phong-T.Binh NH10 1,091 356 545 237 1,557 243 583 3,486 1,381 HaTay-HaNam NH1 5,977 1,707 2,619 952 4,729 1,459 959 8,941 1,079 HaTay-HaNam NH21b 169 71 38 25 1,096 164 121 1,564 1,177 Ha Nam-HoaBinh NH21 91 23 13 5 314 29 63 1,449 342 H.Yen-T.Binh NH39 285 110 204 26 613 17 5 2,784 1,480 NinhBinh-ThanhHoa NH1 2,212 699 1,366 54 3,686 913 785 5,631 1,452 NinhBinh-ThanhHoa NH10 46 20 18 5 484 1 - 3,137 1,463 T.Hoa-NgheAn NH1 1,321 635 914 988 1,378 1,239 1,061 2,406 1,003 NgheAn-HaTinh NH1 1,761 316 1,123 28 1,794 353 502 8,892 1,516 HaTinh-Q.Binh NH1 421 119 706 1 1,105 371 459 906 210 Q.Binh-Q.Tri NH1 500 375 858 12 1,092 394 466 1,404 424 Q.Tri-TT.Hue NH1 820 633 964 29 1,262 478 503 4,701 1,209 TT.Hue-Danang NH1 851 561 872 46 1,090 466 589 3,469 654 Danang-Q.Nam NH1 1,657 838 1,062 238 2,400 663 587 26,395 2,223 Danang-Q.Nam NH14b 436 212 235 267 632 387 200 2,441 275 Q.Nam-Q.Ngai NH1 818 507 681 70 1,347 474 536 3,428 537 Q.Ngai-B.Dinh NH1 390 363 825 14 1,062 353 487 2,419 205 B.Dinh-PhuYen NH1 397 315 667 30 1,083 436 562 2,609 189 PhuYen-K.Hoa NH1 436 457 997 43 1,377 550 596 2,166 247 KhanhHoa-NinhThuan NH1 658 580 1,074 72 1,919 594 675 3,055 960 N.Thuan-B.Thuan NH1 588 487 991 107 1,548 605 660 1,794 44 B.Thuan-D.Nai NH1 1,193 1,105 1,194 93 2,711 779 768 4,611 265 B.Thuan-BR-VT NH55 107 58 76 36 307 43 5 2,355 158 TayNinh-HCMC NH22 3,004 1,078 513 148 2,984 532 328 19,053 2,324 D.Nai-HCMC NH1 13,021 4,945 5,595 2,859 16,550 8,387 7,543 20,550 326 B.Duong-HCMC NH13 6,146 2,247 523 593 4,003 767 342 38,618 1,038 HCMC-LongAn NH1 5,516 3,286 1,427 1,608 7,085 1,156 703 26,748 348 HCMC-LongAn NH50 510 119 376 91 418 6 2 18,354 232 D.Nai-BR-VT NH56 192 147 101 108 338 76 15 3,891 749 D.Nai-BR-VT NH51 4,512 1,497 1,242 1,623 2,468 1,987 1,347 22,780 460 LongAn-T.Giang NH1 5,120 5,179 1,396 999 9,384 1,428 667 27,538 861 CanTho-H.Giang NH1 1,765 1,884 642 233 2,777 262 89 34,003 255 V.Long-CanTho NH1 1,992 2,278 491 77 3,269 303 114 31,570 5,918 AnGiang-CanTho NH91 1,096 902 377 181 2,581 172 49 34,100 3,410 K.Giang-CanTho NH80 440 542 306 41 1,209 78 4 8,203 3,593 * 2-way, 24-hour traffic, adjusted. Source: VITRANSS 2 Road Traffic Survey, 2010

ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

Annex 7: Transport Activity in Hanoi Based on the survey results (TDSI, 2003), the inner-city results of Hanoi indicate that:

• The average number of trips per person in 7 inner-city districts per day is 2.25 trips (average number of frequent trips is 1.92 trips/day and unexpected trips is 0.33 trips/day).

• Total trips in 7 inner-city districts/day are 2.8 million. • The average length of one trip is around 4.34 km excluding walks (this length is relatively short and appropriate to the different modes of 2 wheel vehicles). • Walking accounts for about 20% of total trips.

Based on the survey results (TDSI, 2003), the suburb results of Hanoi indicate that: • The average number of trips of a person per day is 1.16. • The number of trips on foot is around 25%. • The share of trips by bicycles is around 35%. • The number of trips by motorbikes account for 32.65%.

Travel Characteristics from Hanoi Household Interview Survey Inner Travel Characteristics Unit Suburb Whole city City

Average number of frequent trips per person Trips/day 1.92 0.9 1.44 Average number of unexpected trips per person Trips/day 0.33 0.26 0.3 Trip rates Total average number of trips per person per day Trips/day 2.25 1.16 1.74

Go home % 49.5 50.1 49.82 Go to work % 22 17.3 19.83 Go to school % 14.5 15.3 14.86 of trips Purpose Others % 13.9 17.3 15.49

Walk Km 0.66 1.02 0.83 Pedicab Km 3.07 1.54 2.36 Bicycle Km 2.9 3.31 3.09 Motorbike Km 4.7 7.16 5.84

Car Km 6.38 12.69 9.32 Taxi Km 5.37 10 7.43

Bus (of company, school, office, etc.) Km 7.23 13.43 10.12 Public bus Km 7.15 13.64 10.17 Average travel distance Inter-provincial passenger bus Km 4.03 4.03 4.03 Walk % 20.3 24.85 22.42

Pedicab % 0.05 0.22 0.13 Bicycle % 23.21 34.91 28.66 Motorbike % 50.79 32.65 42.34 Car % 0.54 0.38 0.46 Taxi % 0.05 0.02 0.03 Bus (of company, school, office, etc.) % 1.47 3.41 2.37 Public bus % 3.22 2.88 3.06 Means of transport Inter-provincial passenger bus % 0.2 0.22 0.21 Others % 0.16 0.46 0.30

Walk Km 0.66 1.02 0.83 ge Av era Pedicab Km 3.07 1.54 2.36

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Inner

Travel Characteristics Unit Suburb Whole city City

Bicycle Km 2.90 3.31 3.09 Motorbike Km 4.70 7.16 5.84

Car Km 6.38 12.69 9.32 Taxi Km 5.37 10.0 7.53 Bus (of company, school, office, etc.) Km 7.23 13.43 10.12

Public bus Km 7.15 13.64 10.17 Inter-provincial passenger bus Km 4.03 4.03 4.03 Source: Transport Development and Strategy Institute, 2003

Annex 8: Growth of automobile and motorcycle vehicles in Vietnam, 1990-2007

Note: Quoted by Dr-Ing.Khuat Viet Hung, “Vietnam Transport’s CO2: Existing Conditions and the Way to Planning Future”, presented in Manila for the 2nd Steering Committee meeting and ASEAN Experts Meeting, 2011 Source: Ministry of Transport, 2009 Annex 9: Share of vehicles by type, 2000 and 2010 A survey of 1,675 motorcycles in Hanoi and 1,627 motorcycles in Ho Chi Minh City (Vietnam Register, 2011) shows that: • Most are not periodically maintained. • About 59% of inspected motorcycles in Hanoi and 52% of inspected motorcycles in Ho Chi Minh City exceed the prescribed emission level (i.e., 4.5% CO and 1,200 ppm HC). • Most have small displacement: 70-150 cc. • Most are 4 stroke engine motorcycles.

The master plan on the road transport development (Decision No 356/2013/QD-TTg) stipulates that by 2020, limiting the increasing number of motorcycle by administrative measures, economy and techniques for controlling the number of motorcycles, motorcycles would be used mostly in

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would be a total of 36 million motorcycles in the country. However, the Ministry of Transport

reported that by end of July 2012, registered motor vehicles already reached 37.19 million, of which 35.24 million are motorcycles.

Percent share in 2000 Percent share in 2010

1% 2% 0% 2% 1% 2%

96% 96%

2W Car Bus Truck 2W Car Bus Truck Source: Clean Air Asia, 2012

Annex 10: Projected modal share in Ho Chi Minh City, 2015 and 2025

2015

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2025

Source: MVA Asia Limited, 2010. Technical Assistance Consultant’s Report: Preparing the Ho Chi Minh City Metro Rail System Project

Annex 11: Fuel prices and trends in Vietnam, 1995-2010

Source: GIZ, International Fuel Price Database, http://www.giz.de/fuelprices

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Annex 12: Vehicle split by fuel type and engine capacity in Hanoi

In a recent work by Tung et al. (2011), more detail on the characteristics of the vehicle fleet in Hanoi is provided, including the vehicle split by fuel type and engine capacity based on survey results involving 3,000 questionnaires. The figures below present the fuel split for motorcycles and

LDVs in Hanoi. It is clear that gasoline-fuelled vehicles dominate the split.

Fuel split for motorcycles in Hanoi Fuel split for LDVs in Hanoi

Source: Tung, Tong, Hung, & Anh, 2011. Development of emission factors and emission inventories for motorcycles and light duty vehicles in the urban region in Vietnam The figures below show the motorcycle and LDV split by engine capacity. It is observed that most of the motorcycles in Hanoi have an engine capacity of 70-100 cc (53%) or 100-125 cc (42%). On the other hand, most of the LDVs have an engine capacity of 2000-2400 cc (51%) of 1300 cc (35%). Tung et al. (2011) also noted that in Hanoi, most of the LDVs are Euro I and II (79%); about 11% are using Euro III and IV and the remaining 10% is not certain.

Motorcycle split by engine capacity in Hanoi LDVs split by engine capacity in Hanoi

Source: Tung, Tong, Hung, & Anh, 2011. Development of emission factors and emission inventories for motorcycles and light duty vehicles in the urban region in Vietnam

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Annex 13: Driving characteristics in Hanoi and Ho Chi Minh City

The work was completed through compilation of a database for motorcycles and LDVs, development of two typical driving cycles for motorcycles and LDVs in Hanoi, and then the selection of 12 representative test vehicles to determine vehicle specific fuel consumption and

emission factors (CO, HC, NOx, and CO2). Driving cycle for motorcycle (top) CEMDC and car (bottom) CECDC in Hanoi

Source: Tong, Tung, Hung, & Nguyen, 2011. Development of driving cycles for motorcycles and light-duty vehicles in Vietnam.

Annex 14: Fuel consumption limits of road motor vehicles National Standards TCVN 9854:2013: Limit of Fuel Consumption and Fuel Efficiency for Passenger Cars (non-mandatory)

Kerb mass/Unladen mass (mk) Fuel Consumption Limit (FC) Fuel Efficiency (FE) kg L/100km Km/L 550

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Kerb mass/Unladen mass (mk) Fuel Consumption Limit (FC) Fuel Efficiency (FE)

kg L/100km Km/L

1320

1660

2510

National Standards TVCN 7356:2014: Limit of Fuel Consumption and Fuel Efficiency for Two-Wheeled Motorcycles and Mopeds (non-mandatory) Capacity (cm3) Fuel Consumption Limit (FC) Fuel Efficiency (FE) L/100km Km/L Up to 50 2.0 50.0 >50 to 100 2.3 43.5 >100 to 125 2.5 40.0

>125 to 150 2.5 40.0 >150 to 250 2.9 34.5 >250 to 400 3.4 29.4 >400 to 650 5.2 19.2 >650 to 1000 6.3 15.9 >1,000 to 1250 7.2 13.9 >1250 8.0 12.5 Source: Decision 1201/QD-BKHCN issued on 23 May 2014 by Ministry of Science and Technology

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Annex 15: Types of motorcycles and LDVs selected for emissions-testing

Capacity Age Average

Model Engine type Catalyst (cc) (years) VKT (km) Honda Wave RS Gasoline, 4 stroke 100 No 3-7 19,632,000

Honda Dream II Gasoline, 4 stroke 100 No > 7 41,745,000

Yamaha Jupiter Gasoline, 4 stroke 110 No 1-3 17,550,000 Suzuki Smash Gasoline, 4 stroke 110 No 3-7 32,054,000

Honda Future Gasoline, 4 stroke 110 No > 7 54,645,000

Motorcycle Honda Lead PGM-FT, Gasoline, 4 stroke 125 No 1-3 4,931,000

Honda Sky Gasoline, 4 stroke 125 No 3-7 24,624,000

Honda Future II Gasoline, 4 stroke 125 No > 7 23,478,000 Ford (Laser) 1840 cm3,EFi 1300-1800 No 3-7 10,000,000

Toyota (Innova) 1998 cm3, VVT-i, EFi 2000-2400 No 1-3 14,000,000 Toyota (Prado) 2500 cm3, VVT-i,EFi 2300-2500 No 3-7 115,000,000 LDVs 2499 cm3, Turbo diesel 2.5 L Ford (Ranger) 2300-2500 No 1-3 14,500,000 TDCi Source: Tung, Tong, Hung, & Anh, 2011. Development of emission factors and emission inventories for motorcycles and light duty vehicles in the urban region in Vietnam Annex 16: Challenges in transport data in Asian countries Fabian and Patdu (2011) identifies the common challenges of Asian countries in collecting transport-related data: Availability of Basic Transport Data in Asia • Data availability differs greatly across the data types

Transport Data Flow and its Impact on Quality and Availability • Available and accessible data are usually presented at very high levels of aggregation System of Transport Data Collection and Maintenance • Type of data collected/generated is influenced by its need (driver) with different, sometimes overlapping, data requirements • Fragmented generation of transport data • Fragmented responsibility for collection of different types of data and the absence of an organisation with a mandate and organisational capacity to integrate different data sets • Private sector is a relevant player in transport data collection but their databases are typically not openly shared to public • Information generated at the project/city/province level is usually stored at the local levels, unless required by the national government • Limited budget allocation for transport data collection, processing and management Comparability of Transport Data within and between Countries • Lack of harmonized classification and methodologies Source: Background Paper for the Sixth Regional EST Forum in Asia: http://cleanairinitiative.org/portal/sites/default/files/Background_Paper_on_EST_Data_and_Indicators_FINAL.pdf

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Annex 17: General institutional structure of the Government of Vietnam

Source: Adam Forde and Associates Pty Ltd., 2003.

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Annex 18: Government agencies on land transport, energy, and climate change

Name of Organisation Website

Ministry of Natural Resources and Environment www.monre.gov.vn (MONRE) http://vea.gov.vn/en/Pages/trangchu Vietnam Environment Administration (VEA) .aspx http://vea.gov.vn/en/aboutvea/Units

Pollution Control Department (PCD/VEA) underVEA/Pages/DepartmentofPollu

tionControl.aspx

Institute of Strategy and Policies for Natural Resources http://isponre.gov.vn/home/ and Environment (ISPONRE) Institute of Meteorology, Hydrology and Environment http://www.imh.ac.vn/ (IMHEN)

Department of Hydro-meteorology and Climate Change www.monre.gov.vn

International Cooperation Department (focal point of www.monre.gov.vn AWGCC in Vietnam)

Ministry of Transport (MOT) www.mt.gov.vn http://www.vr.org.vn/vre/HomeNE. Vietnam Register aspx

International Cooperation Department www.mt.gov.vn

Environmental Department www.mt.gov.vn Directorate for Road of Vietnam (DRVN) www.drvn.gov.vn

Vietnam Railway Authority (VNRA) www.mt.gov.vn Transport Development and Strategy Institute (TDSI) www.tdsi.gov.vn

Department of Transport www.mt.gov.vn Provincial Departments of Transport Cuu Long Corporation for Investment Development and http://cuulongcipm.com.vn/ Project Management of Infrastructure Vietnam Railway Corporation www.vr.com.vn Ministry of Science and Technology (MOST) STAMEQ www.tcvn.gov.vn Vietnam Standards and Quality Institute www.vsqi.gov.vn Ministry of Industry and Trade (MOIT) www.moit.gov.vn General Department of Energy www.moit.gov.vn Department of Technical Safety and Industrial www.moit.gov.vn Environment Industrial Policies and Strategy Institute http://www.ipsi.org.vn/ PetroVietnam www.pvn.vn Vietnam Petroleum Group (Petrolimex) www.petrolimex.com.vn Oil refinery companies Ministry of Planning and Investment (MPI) www.mpi.gov.vn General Statistics Office www.gso.gov.vn Provincial Statistics Offices

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ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector Name of Organisation Website

Ministry of Public Security (MPS) www.mps.gov.vn/

Traffic Police Bureau www.mps.gov.vn/ Local Traffic Police

National Traffic Safety Committee http://antoangiaothong.gov.vn NGOs/Associations Vietnam Automobile Manufacturers Association (VAMA) www.vama.org.vn/ Vietnam Association of Motorcycles Manufacturers (VAMM) Not available Vietnam Bicycles and Motorcycles Association Vietnam Automobile Transportation Association (VATA) http://www.hiephoivantaioto.vn/

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Annex 19: Overview of laws and decisions relevant for sustainable transport

Laws related to environmental protection according to Vietnam’s Second National

Communication to UNFCCC • Law on Environmental Protection No. 52/2005/QH11 dated 29th November 2005 (replaces the 1993 Law on Environmental Protection) • Water Resources Law No. 08/1998/QH10 dated 20th May 1998

• Petroleum Law (1993) No. 10/2008/QH12 dated 6th July 1993 (amended twice on 9th June 2000 and 3rd June 2008)

• Law on Minerals No. 2/1996/QH9 dated 1st September 1996 (amended on 27th June 2005). • Law on Forest Protection and Development No. 29/2004/QH11 dated 3rd December 2004

(replaces the 1991 Law on Forest Protection and Development) • Law of Electricity No. 28/2004/QH11 dated 3 December 2004 • Law on Energy Efficiency and Conservation No. 50/2010/QH12 dated 28th June 2010

Laws related to climate change according to “Vietnam Climate Change Policy Development” presented in 7th Regional Network Meeting of SEAN-CC in Manila, Philippines

• Land Law, 2003; • Law on Environmental Protection, 2005; • Law on Biodiversity, 2008; • Law on Minerals, 2010; • Law on Water Resources, 2012; • Law on Natural Disaster Risk Prevention and Reduction (draft)

Decisions that led to the development of the Environmentally Sustainable Transport (EST) Strategy • Decision 256/2003/QĐ-TTg on the approval of the National Environmental Protection Strategy until 2010 and Orientations towards 2020. • Decision 153/2004/QD-TTg on the promulgation of orientations for sustainable development strategy in Viet Nam (Viet Nam Agenda 21). • Decision 355/2013/QĐ-TTg on the modification of the Viet Nam Transport Development Strategy until 2020 and vision to 2030 • Decision 4088/QĐ-BGTVT on Sustainable Development Action Plan of MOT for the period 2013 – 2020. Key documents on Vietnam’s Energy Efficiency • Decree No. 102/2003/NĐ-CP on Energy Efficiency and Conservation (EE&C) • Circular No. 01/2004/TT/BCN on EE&C in establishments • Decision No. 79/2006/QD-TTg on approval of the National Program on EE&C

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ASEAN - German Technical Cooperation | Energy Efficiency and Climate Change Mitigation in the Land Transport Sector • Decision No. 80/2006/QD-TTg on approval of the Electricity Saving Program for the period

2006-2010

• Decision No. 1855/QD-TTg on approval of the National Energy Development Strategy of Vietnam up to 2020 with vision to 2050

• Law on energy efficiency and conservation: No. 50/2010/QH12 • Decree No. 21/2011/NĐ-CP on detailed prescription and measures to execute the Law on EE&C • Decision No. 1427/2012/QD-TTg dated 2 October 2012 on approval of National Targeted

Programme on Energy Efficiency and Conservation Phase 2012–2015 Legal framework for establishing fuel economy standards • Law on energy saving and efficiency • Decree No. 21/2011/ND-CP dated 29/03/2011 of the Government "Detailed regulations and law enforcement measures to use energy-saving and efficiency"; • Decision No 51/2011/QD-TTg dated 12/09/2011 of the PM "Regulate the list of means and equipment to energy labelling, impose minimum energy efficiency and roadmap " • Decision No 1427/QD-TTg dated 02.10.2012 of the PM on the "Approval to national target program on energy use and efficiency savings for the period 2012-2015"

• Circular No 64/2011/TT-BGTVT dated 26/12/2011 of the Ministry of Transport of the

“Regulation on measures energy savings and efficiency in transportation operations" • Decision No 3335/QD-BGTVT dated 12.24.2012 of the Ministry of Transport on "Project approval made on national target program on energy use and efficiency savings in 2013" • Circular No 07/2012/TT-BCT 04 dated 04/01/2012 of the Ministry of Industry and Trade "energy labelling regulations for vehicles and equipment use energy” Development of bus public transport for the period 2012-2020 (280/QĐ-TTg, dated 8/3/2012)

• In term of public transport services, bus will be the dominant vehicle in the period of 2012- 2020 • Develop a comprehensive bus system that integrate smoothly with other public transport means (MRT, BRT…) • Should be convenient and in accordance with travel needs (frequency, bus station, e-ticket) to encourage people shifting from private vehicle to buses. • Good route planning and route optimization • Improve the quality of bus services • Encourage the environmentally friendly buses • Application of new technologies in bus management and operation.

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For implementing this a work plan following Decision by the Prime Minister assigns the following

responsibilities:

Ministry of Transport: To supervise the implementation of the master plan for the development of the bus transport system. Submit the annual report which includes the results of the implementation to the Prime Minister Ministry of Finance: Take the lead and coordinate with relevant ministries, agencies to propose the mechanism of the interest subsidy on the bank loans for bus investment. Develop mechanism and specific policies to promote environmentally friendly buses

MoNRE: To coordinate with the City and Provincial People’s Committee in allocating land for the

operation of bus service. Ministry of Education and Training: To steer the schools to transport students by bus, encourage students to use bus. Ministry of Information and Communications: To coordinate with the National Traffic Safety Committee to undertake awareness campaigns to promote the benefits of using bus services. To coordinate with MoT, MoF in the deployment of ticketing system by using internet, telephone… Ministry of Planning and Investment: To coordinate with MoF to propose subsidies from state budgets for bus operation. City and Provincial People’s Committee: Develop the master plan for the development of the bus transport system. To implement the policies to subsidize the bus routes.

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Annex 20: Existing policies on transport (status: end of 2014) ASEAN

Category | Cooperation Technical German

Main

Impleme respons Policy / Mitigation ntation ible Description Status *** Assessment / remarks**** measure potential period organis olicy P

Freight ation (s) ASI (G)* Passenger/ Passenger/ instrument**

I/G P/F E CO2 based While tax mechanism and incentives have been renewed to - Not in fuel pricing / encourage the use of alternative fuels (e.g. Decision No. discussion taxation 177/2007/QD-TTG of November 20, 2007, approving the

systems scheme on development of biofuel up to 2015, with a 35

vision to 2025 ), taxation for passenger cars and trucks are Energy Efficiency and Climate Change Mitigation in the Land Transport Sector not based on CO2 emissions.

G P/F E Fuel subsidy National No policy is in place to subsidise fossil fuels in accordance - Implementation Law No. 50/2010/QH12 mandates reduction Assembly with their political commitment through international ongoing providing financial support and energy systems including G20, APEC, Rio+20 to price subsidy and other necessary rationalise/phase out fossil fuel subsidies in the medium- incentives to promote economical and term, while providing essential energy services for efficient use of energy.37 vulnerable communities.36

G P/F R Integrated - land-use planning

G F I Certification - system for low-carbon companies

G P/F I GHG - Top down approach used in GHG Emissions inventories and BURs monitoring system

G P/F E Road pricing 1 January MOT Toll roads are applied for roads under the public–private - Implemented In July 2013, authorities in many 2013 partnership (PPP) or build–operate–transfer (BOT) system provinces and cities noted that fees have only. For roads constructed by government budget, the not yet been collected from motorbikes as monthly road fee is applied for each vehicle and the annual they did not have sufficient time to road fee is applied for each motorbike. prepare a detailed fee collection system 113 On 1 January 2013, revised road fees have been collected and to submit it to the local’s people for motorcycles and automobile. council (the law-making body) as the fees

ASEAN

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German Technical Cooperation | | Cooperation Technical German

Impleme respons Policy / Mitigation ntation ible Description Status *** Assessment / remarks**** measure potential period organis olicy P

Freight ation (s) ASI (G)* Passenger/ Passenger/ instrument**

- motorbikes: VND50,000 per year fee for 100cc and were only approved in November 2012. VND100,000 for those with larger engines - Automobiles: VND1.56-12.48 million, depending on engine capacity. Toll fees also increased by 3.5 times starting November 2012, lasting until 2016.38For cars and trucks,

roadworthiness certificates are granted to pay the fee since 1 January 2013. Users can pay annually at local vehicle Energy Efficiency and Climate Change Mitigation in the Land Transport Sector registries in charge of certifying roadworthiness, or when obtaining roadworthiness certificates at stipulated intervals of three to 30 months 39

A P/F E/ Parking 2012 Hanoi On-street parking fee is imposed on cars and motorbikes - Implementation Overcharging parking fees are common. R pricing and (Hanoi) People’s but rates vary between cities and districts. In the central ongoing Parking lots are likewise illegally set up on management Committ districts of Hanoi, parking fees for cars of less than 9 seats special occasions (e.g. Lunar New Year).42 ee are charged up to VND 40,000, while cars with more than 10 seats are charged up to VND 50,000. Monthly parking fee is VND 2 million to VND 4.5. Million, while roofed lots charge higher. 40 Additionally, businesses running parking lots must pay 2% of their revenue to city authorities.41

2006, Ho Chi In Ho Chi Minh City, bicycles, motorbikes and electric Implementation Three location groups for the parking rate revised 1 Minh bikes pay between VND500 and VND 4,000, depending ongoing fees of bikes, electric bikes, and August City on location groups.43 motorbikes: Group 1 will cover schools 2012 People’s and hospitals; Group 2 will cover markets, Committ supermarkets, apartment blocks of Grade ee III and IV, shops and headquarters of organisations; Group 3 will include apartment blocks of Grade I and II, amusement and entertainment areas, hotels, restaurants, dance halls, theatres and commercial centres. The parking fee rates for automobiles will be divided into two areas. Area 1 will cover Districts 1, 3, and 5; Area 2 will cover the remaining Districts.

ASEAN Category

Main -

German Technical Cooperation | | Cooperation Technical German

Impleme respons Policy / Mitigation ntation ible Description Status *** Assessment / remarks**** measure potential period organis olicy P

Freight ation (s) ASI (G)* Passenger/ Passenger/ instrument**

A P/F I/I ITS 2012-2030 MOT MOT announced in late 2012 that there will soon be a set - Pilot There were various other initiatives to nv of regulation to implement ITS in Vietnam beginning 2013. develop an ITS. In 2010, there was news It will be divided into phases: from 2012 to 2015, 3centres regarding a “15-year project to set up 115 to co-operate and control traffic situation in regions of booths and maps across the city to north, central and south will be built, while the periods provide bus passengers plans for their

2015-2020 and 2020-2030 will be more focused in updating routes, including estimated fees and stops, information-technology application and perfecting whenever they enter starting points and

intelligent transport systems' services.44 destination on touchable screens.”45 Energy Efficiency and Climate Change Mitigation in the Land Transport Sector In October 2013, an ITS on the 50-km CauGie–NinhBinh highway in Ha Nam province began operation.46 The city of Da Nang has an agreement with IBM Technology to establish a real-time bus transit information such as driving speed, location, as well as a traffic control centre. Meanwhile, Hanoi has a traffic signal control centre but it appears that only a small fraction of the cameras installed are functioning and the software is outdated. Japanese firms Toshiba, Hitachi and ITOCHU have partnered to supply ITS package to Vietnam Expressway Corporation, which is to be deployed on the 55-km-long Ho Chi Minh and Dau Giay section of North-South expressway. The package consists of electronic toll collection, traffic control and equipment monitoring systems, and is meant to reduce traffic jams and to improve logistics. The project will begin commercial operations in the first half of 2017.47

A P R/ TOD/comp 3 April Ministry A general urban construction planning is required to - Intended It has been observed that a “significant E act 2009 of propose land-use planning solutions which optimize the number of buildings, particularly those in development Constru possibility to use land for mixed purposes pursuant to the suburban districts do not have /mixed-use ction Vietnam Building Code on Regional and Urban Planning construction permits, resulting in planning and Rural Residential Planning, issued as Decision No. spontaneous urbanisation and occupation 115 04/2008/QD-BXD of 3 April 2008. The Decision likewise of agricultural land.” Moreover, large specifies the distance between mass transit routes in urban urban planning or infrastructure projects

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centres, the distance between residential/working places in Ho Chi Minh City have been prepared and public car parks, the distance between urban centres and executed with large partners and by and bus stops, tramcar stations, railways, among others.48 public-private partnerships, and “this has considerably contributed to the improvement of planning.”49

A P R Telecommun - Not in Energy Efficiency and Climate Change Mitigation in the Land Transport Sector ication discussion promotion

A P E Public - Not in transport discussion fare level/structu res

S P E Incentives - Not in for PT discussion investments

S P R/I Bike-sharing 2015 MOT Vietnam will launch pilot public bike rental services in 5 Pilot In March 2014, Hanoi city authority nv cities in 2015, namely Hanoi, Ho Chi Minh City, HaiPhong, announced that the program to be Danang, and Can Tho.50 launched in Hoan Kiem district in Hanoi will consist of 250 bikes which will be for rent for USD 0.19 per hour and will be paid for by electronic bikes. The long- term objective of the program as cited is to attract tourists.51

S P R Car-sharing - Not in discussion

S P R NMT- 3 April Ministry The Vietnam Building Code on Regional and Urban - Intended Essential daily-life services (e.g. preschool friendly 2008 of Planning and Rural Residential Planning, issued as Decision education, lower secondary education, building Constru No. 04/2008/QD-BXD of 3 April 2008, specifies culture and information, marketplace, regulations ction minimum width for pedestrian pavements along the roads, commercial services, sports and physical

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and a maximum allowable distance of 500 m. for training, spaces for strolls and leisure) are pedestrians going from their residential or working places also required to be within a 500-m. radius to public car parks. Additionally, it has provisions on the or less to promote walking and the use of distance between tunnels and overpasses for pedestrians, mass transit vehicles. The Decision also width of a tunnel and overpass for pedestrians, and lighting outlines minimum parking space

of roads for cyclists and pedestrians. requirements for cars, motorcycles, bicycles, buses and trucks in various types

of buildings. Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

S P R Three in one - Not in policy/high- discussion occupancy vehicle lanes

S P R Regulatory Varies MOT, Road closures and pedestrianised streets in the form of a - Varies between and physical People’s car-free day campaign were only run in the ancient city of cities, but mostly restrictions Committ Hoi An in Quang Nam province in Vietnam in 2012.52 either planned, on car use ees Although Hanoi authorities planned to pedestrianise six implemented or of com streets in the Old Quarter on weekends, this drew varied partially munes, reaction from citizens. No discussions are available implemented. wards online.53 and townshi ps will collect the fees

S P I Real-time Danang’ Danang has an agreement with IBM technology to -- Pilot Da Nang was chosen to receive a USD public s establish a traffic control centre to control the traffic signal 400,000 grant from IBM for its smart city transport Departm system. Real-time information on Danang’s city buses such project. The two priority areas where information ent of as driving speed, location, and predicted journey times will technologies will be deployed are in water Transpo likewise be provided, and changes to bus routes, time system and transport sector. rt tables, and estimate arrival times will be available on the city’s web portal.545556

117 S P I Campaigns Many of the Decisions and Decrees include provisions on - Intended educating the public and raising awareness, but campaigns to shift to a more sustainable form of transport (e.g. bus

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system or NMT) are not done massively and consistently.

S P R Master 2009 MOT Railways: National railway transport master plan has been - Planned Railway transport is expected to account planning for approved.57This promotes international integration and the for at least 13% of passenger transport PT/NMT development of urban railway network as the key public and 14% of commodities transport by transport in big cities (Hanoi and Ho Chi Minh City). It 2020. Of the total, the urban passenger

covers freight as well. It also notes the completion of railway transport should make up at least Energy Efficiency and Climate Change Mitigation in the Land Transport Sector railway networks in Hanoi and Ho Chi Minh City, 20% of the public passenger transport in including the development of Highland railway network, Hanoi and Ho Chi Minh City. By 2030, the railway connecting coastal provinces in the northern the railway transport should reach 20% of delta and the railway to Mekong delta.58 This updates the total passenger transport and 25% of total Decision of the Prime Minister in 2002 approving the public passenger transport in big urban master plan on the development of railway areas.60 communications and transport sector until 2020. 59

2012 MOT, Bus system: The Decision 280/QD-TTg on program of Implementation MOF, development of public transport by bus from 2012 to 2020 ongoing MONR was approved to develop the bus transit, and integrate it E, with other forms of transport in various provinces and MOET, cities, investment in infrastructure. 61 MIC, MPI, PCs

2010-2025 Ho Chi Minh City development master plan towards 2025 Implementation Funding sources will come from current will develop an elevated railway and metro lines and 19 ongoing vehicle fleet and foreign loans from bridges to relieve the city’s current overloaded traffic international development organisations.62 system. A separate paper notes a revised master plan of Ho Promoting PT/NMT is not clearly visible Chi Minh City approved by the People’s Committee in in the master plans. In fact, underground March 2008. parking lots will be built in accordance with the Ho Chi Minh City development master plan63

Up to Hanoi master plan for 2030 and vision to 2050 ensures the Planned 2030 preservation of tree-lined streets and the development of green corridors. 64Hanoi will also have 8 urban railway routes covering 284 km. by 2030.65 Authorities try to

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prevent illegal vending and encroachment on sidewalks by commercial establishments.66

S P R Low- - Not in emission discussion

zones

S P R Bus route Hanoi’s Bus transport makes up a small fraction of the daily BRT in 5 Planned The World Bank-funded Hanoi Urban Energy Efficiency and Climate Change Mitigation in the Land Transport Sector optimisation People commute. Developing agencies support the government in major cities Transport Development Project68 and Committ optimising bus systems. Reform of bus system 0.57 includes a bus rapid transit (BRT) prioritisation ee management, with a single agency responsible for routing, MtCO2eq/a component, segregating bus lanes and contracting operators and a revenues collection system, is -Hanoi and developing bus priority. BRT lines will being implemented in Hanoi. Smaller cities don’t have this. HCMC 0.53 also be built in Ho Chi Minh City by mid- tCO2eq/a 20186970 and in Da Nang by 2016,7172 2015. 67 both funded by The World Bank.

S P R Integrated Metro lines are still being constructed73 and bus systems - Intended ticketing are being reformed and constructed. Some bus lines in Hanoi have ticket integration.

S P Inv Cycling Ministry Pursuant to the Vietnam Building Code on Regional and - Intended Since 2009, the operation of cyclos, the infra- of Urban Planning and Rural Residential Planning, issued as three-wheeled bike taxis, has been structure Constru Decision No. 04/2008/QD-BXD of April 3, 2008, under regulated in Hanoi. In 2013, Hanoi ction “Planning on communal central zones,” markets and government says that cyclos will gradually services shops must have a place for keeping bicycles and be banned.75 motorcycles. Moreover, along roads of regional or higher grade, separate road parts for bicycles must be arranged with median strips or lines against motorways. On roads of other kinds, bicycles and motor vehicles may use the same road parts. The minimum parking space in a parking lot for bikes is set at 0.9m2 while that for motorbikes is 3m2...74 119

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S P R Park and A case study on building the pilot park-and-ride facilities - Intended ride along bus route No. 6 in Hanoi, to be managed either by Hanoi city or local People’s Committee, has been conducted.76 An ADB project in Hanoi will develop integrated multi-modal stations with park-and-ride facilities to support effective utilisation of Hanoi metro Line 3.77

Energy Efficiency and Climate Change Mitigation in the Land Transport Sector March - Park-and-ride facilities for motorcycles are provided in Pilot 2009 Long Bien bus interchange. This bus interchange was officially opened in March 2009.78

S P Inv Walking 3 April Ministry The Vietnam Building Code on Regional and Urban - Implementation Ho Chi Minh City has a relatively good infrastructur 2008 of Planning and Rural Residential Planning, issued as Decision ongoing set of amenities such as shading for e Constru No. 04/2008/QD-BXD of 3 April 200879 specifies a pedestrians but the walkability rating in ction minimum width of the pavements for pedestrians along the areas around public transport each side of the road. For urban roads and streets terminals in Ho Chi Minh City was found connecting to accesses to trade centres, markets or cultural to be low. In Hanoi, several agencies centres, 6.0 m. For regional roads, 4.5 m. For sub-regional likewise do not know who is primarily roads: 3.0 m. responsible for the walkways. 80 Illegal parking is considered a problem.

S P/F Inv Non-urban 2009 Vietnam The national railway transport master plan until 2020 aims - Planned rail Railways to develop the external railway network linked with improvemen seaports and border countries. Long-distance passenger ts transport will also be developed. By 2030, the country will build the Highland railway network, the railway connecting coastal provinces in the northern delta and the railway to Mekong delta.81

Discussions regarding a proposal being drafted in 2013 to Intended construct a high-speed train linking Ho Chi Minh City and Hanoi include talks on repairing dangerous sections of existing railways by 2020 before renovating locomotives and carriages. Barriers at crossroads will also be installed.82

2012-2015 Railway line is going to be rehabilitated between Yen Vien 40,000 Partially 83 (on the outskirts of Hanoi) and Lao Cai (Chinese border). tCO2eq/a implemented

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S P/F Inv High-speed An upgrade of the express railway linking Ho Chi Minh - Planned A similar plan initially stirred controversy rail City and Hanoi is being discussed. The plan is to be and was rejected by the National infrastructur proposed to the National Assembly (Vietnam’s parliament). Assembly in 2010 due to the high cost e Of the four scenarios that JICA recently proposed, JICA (USD 56 billion). The bullet train would advised that strengthening the capacity for the current be travelling at 300 km an hour, and

single rail, with speed of 90 km an hour, travel time of 25 would have cut the travel time between hours, and the capacity of 50 trains/days and an investment Ho Chi Minh City and Hanoi from the

cost of USD 1.8 billion is the most feasible for Vietnam.84 current 29-33 hours to less than six Energy Efficiency and Climate Change Mitigation in the Land Transport Sector hours.858687 However, a revised study was re-submitted in 2013.

S P Inv Urban PT Approved Ho Chi Six metro lines are planned for Ho Chi Minh City.89 - Implementation There are inadequate facilities to infrastructur in 200788 Minh Construction of the USD 2.2-billion Metro Line 1, which is ongoing encourage the use of public transport, and e City nearly 20-km long, began in 201290 and will be operational there is a strong sense of car culture. 93 Manage in 2017. It will pass through Ho Chi Minh City's districts 1, ment 2, 9, among others, and will have underground stations.91 Authorit Construction for Metro Line 2 will commence in 2014.92 y for Urban Railways

In Hanoi, the implementation of public transport projects Implementation was delayed. It will have a large carrier such as ongoing Metropolitan Rapid Transit, Light Rapid Transit and Bus Rapid Transit. there is no urban railway going into operation up to 2015”94

One of the pilot lines in the transport sector of the master 20,000 Implementation plan for Hanoi, the 12.5-km Nhon-Hanoi metro station, tCO2eq per ongoing co-financed by AFD, is scheduled to be commissioned in year 2015. Another line is urban railway project Cat Linh - Ha between Dong with the total investment of nearly 8770 billion, co- 2010 and financed by China. 2030

I P/F E Taxation Vehicle taxation does not directly have a relation with Not in Taxes account for more than 50% of the

121 measures energy or CO2 (however there is an exemption for certain discussion price of a car. The collected fees are said stimulating vehicle types, see below EV/LPG incentives). to be utilized for road maintenance, as the energy- In Vietnam, car ownership is limited due to import tax, current capital of Vietnam yearly can

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efficient or excise tax, value added tax (VAT), environment protection manage to maintain only a fraction of the lower- tax, enterprise income tax, application fee, registration roads. There is over 256,600 km of roads, carbon fee, number plate application fee, civil liability insurance of which more than 17,200 km of national vehicles premium, tangible insurance premium, fuel fee, and road roads, 23,530 km of provincial roads.100101 maintenance fee. These rates can be high. For instance, However, the targeted sum of fees to be imported cars bear an import tax of 68-78% plus an excise collected is believed to meet only 20-30%

tax (equalling 45-60% of the total value of import price and of the requirement for fixing the country’s import tax) and a 10% VAT.959697Motorcycles carry the bad roads.102 Energy Efficiency and Climate Change Mitigation in the Land Transport Sector same burden. They are charged with road maintenance fees as well. 9899

I P/F E/ Import 1 May MOIT Second-hand cars that are to be imported must not be over Implementation R restriction 2006 five years of age from the date of manufacture to the date ongoing for of import. Importation of bicycles and two-wheeled and inefficient three-wheeled vehicles, including second-hand parts and vehicles transport facilities comprising frames, tyres and tubes, accessories and engines of all types of automobiles, among others, is prohibited by Decree No. 12/2006/ND-CP.103

1 January MOT Importation to Vietnam of vehicles that burn leaded Implemented 2001 gasoline was banned in 2001 pursuant to Directive No. 24/2000/CT-TTg of November 23, 2000.104105

I P/F E/ Vehicle While vehicle-scrapping programs are not at the national Not in R scrapping/ policy level, Vietnam limits the age of motor vehicles. (See discussion fleet “Inspection and Maintenance”) replacement

I P/F I Car labelling From MOIT Decree No. 21/2011/ND-CP of 29 March 2011 requires Implemented / Effective for cars, planned for 2015 producers and importers to affix equipment and vehicles planned motorcycles with energy labels pursuant to the Law on Energy Conservation, and discusses two types of labelling: the comparative label, which provides information on energy consumption, among others, to help consumers compare with products of the same type in the market, and the certification label, which certifies that the equipment or vehicle has the highest energy efficiency compared to those

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of the same type.106

I P/F R Fuel MOT (non-mandatory) national standards TVCN 9854:2013 on FE Implementation Mandatory standards are being discussed economy fuel consumption limits for passenger cars and method for standard: 3.7 ongoing / standard determination has been established through Decision No. MtCO2e planned

2586/QD-BKHCN dated 22 August 2013, while national medium- standards TCVN 7356:2014 on fuel consumption limits for term: 2.0 Energy Efficiency and Climate Change Mitigation in the Land Transport Sector two-wheeled motorcycles and mopeds has been established MtCO2e/a through Decision No. 1201/QD-BKHCN dated 23 May 107; 26% 2014. reduction for HDVs108

R Emission From MOT Decision No. 49/2011/QD-TTg dated 1 September 2011 Implementation Current standards are being implemented; standards 2017 likewise provides the roadmap for application of exhaust ongoing; more more stringent emission standards are emission standards to manufactured, assembled and stringent planned for 2017 imported brand-new cars and motorbikes, requiring standards manufactured, assembled and imported brand-new cars to planned comply with Euro 4 exhaust emission standard from 1 January 2017 and Euro 5 exhaust emission standard from 1 January 2022. It likewise requires manufactured, assembled and imported brand-new motorbikes to comply with Euro 3 exhaust emission standard from 1 January 2017.109

R From MOT Fuel quality must comply with Euro 4 standards by 1 Planned 2016 January 2016, and eventually with Euro 5 by 1 January 2021.

R Since 2012 MOT MOST has issued Circular20/2009/TT-BKHCN dated 30 Implementation The Circular covers unleaded gasoline and September 2009 on the promulgation and implementation ongoing gasoline E5, diesel fuel oils and diesel fuel of national technical regulations on gasoline, diesel fuel oils B5, biodiesel fuel B100 used for mixing and biofuels.110 diesel fuel, and denatured fuel ethanol for mixing gasoline.

R 2010 to MOT For the period 2013 to 2015, the implementation the Implementation The Decision covers motorcycles and 2015 verification of emissions standards for 80% to 90% of ongoing mopeds.

123 motor vehicles in Hanoi and Ho Chi Minh City is sought pursuant to Decision No.909/2010/QD-TTg. The

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network of verification agencies is sought to be expanded to implement the verification of emission standards for 60% of motor vehicles, motorcycles in the cities.

since 2001 MOT Directive No. 24/2000/CT-TTg of November 23, 2000 Implementation eliminates the use of leaded petrol beginning January 2001, ongoing

and motorized vehicles of various types using leaded petrol Energy Efficiency and Climate Change Mitigation in the Land Transport Sector and emitting black smoke that cause environmental pollution are banned from operation.111112

I P/F R Inspection 2017 MOT The Vietnam Law on Environmental Protection requires Implementation Current standards are being implemented; and onward cars, motorbikes and other motor vehicles which are locally ongoing; more stringent emission standards are maintenance manufactured or assembled or imported to satisfy gas Planned planned for 2017 emission and noise standards.113 In 2011, the Prime Minister announced that motor vehicles are to comply with Euro 4 standards by 1 January 2017, and eventually with Euro 5 by 1 January 2022, whereas motorcycles are to comply with Euro 3 standards by 1 January 2017.114

2010 to MOT From the period 2010 to 2013, Decision Implementation This Decision covers emission control 2015 No.909/2010/QD-TTg aims to achieve 20% of the people ongoing from motorcycles. using automobiles in Hanoi and Ho Chi Minh City to According to the news116, “105 auto comply with regulations on verification, maintenance and registration stations across the country repairing of motorcycles to meet emission standards, and and centres for vehicle emissions testing to build a network of motor vehicle emission-testing have been built.” centres (at least 100 in Hanoi and 150 in Ho Chi Minh City) and training for at least 500 managers, technicians, staff in Hanoi and Ho Chi Minh City.115

Since 2006 MOT, Used motor cars of less than 16 seats which are imported Implementation MOIT, to Vietnam must be no more than 5 years old from the ongoing MOF, date of manufacturing to the date of arrival to Vietnam Ministry pursuant to Joint Circular No. 03/2006/TTLT-BTM- of Public BGTVT-BTC-BCA dated March 31, 2006. 117 Circular Safety No.19/2009/TT-BCT dated July 7, 2009 on the (MPS) amendment of and supplement to Inter-Circular

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No.03/2006/TTLT-BTM-BGTVT-BTC-BCA guides the import of used, less than 16-seat passenger cars in accordance with Decree No.12/2006/ND-CP dated January 23, 2006118

Since MOT, New passenger cars imported into Vietnam must be Implementation 2010 MOIT, granted a certificate of conformity from inspection of ongoing MOF quality, technical safety and environmental protection or a Energy Efficiency and Climate Change Mitigation in the Land Transport Sector notice of exemption from inspection of quality, technical safety and environmental protection by Vietnam Register pursuant to Joint Circular No. 25/2010/TTLT-BCT- BGTVT-BTC dated 14 June 2010.119

01 May Vietnam For imported motorbikes, imported engines for motorbike Implementation 2013 Register manufacture and assembly, Circular No. 44/2012/TT- ongoing BGTVT dated 23 October 2012 stipulates the inspection of the technical quality, safety and environment protection, including the inspection method and certification of imports. 120

1 October Vietnam Circular No. 29/2012/TT-BGTVT dated July 31, 2012 Implementation This circular applies to the improvement 2012 Register regarding regulations on renovation of motorized means of ongoing of automobiles which have registered Departm road transportation prohibits the conversion of the plates or are used cars and permitted for ent, function of motored vehicle that are over 15 years of age import. It does not cover motorcycle and Services (starting from the production year to the time of mopeds. of renovation), the renovation of passenger cars into trucks Transpo (except the conversion of those of passenger cars with less rtation, than 16 seats into vans), the renovation and modification motored of the basic length of truck, even the renovation of a truck vehicle into a truck of different type and vice versa, the renovation inspectio to increase the length, width and height n Units of truck cargo tank (except for special-use truck), among others. No renovation is permitted for imported automobiles within five years and for imported frozen trucks within 3 years from date of issuance of registered plate. 121 125

I P/F R Age Since 2009 MOT Decree No.95/2009/ND-CP dated 30 October 2009 Implementation While this Decree covers cargo

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limitation of regulates that passenger automobiles of over 20 years, ongoing automobiles (, i.e. trucks), it does not vehicles cargo automobiles of over 25 years, including passenger cover special-use automobiles (with a automobiles transformed from other vehicles before structure and equipment designed for a January 1. 2002 of over 17 years, will be suspended from special function or utility), trailers and circulation.122 Circular No.21/2010/TT-BGTVT further semi-trailers. It also does not cover regulates passenger cars older than the stipulated use life passenger automobiles of up to 9 seats.

and is changed into freight cars must adopt the use life of a freight car, which is no more 25 years, while a passenger Energy Efficiency and Climate Change Mitigation in the Land Transport Sector car over 10 seats (including the driver’s seat) and specialized passenger cars converted into passenger cars must apply the use life of a passenger car, which is not more than 20 years. Freight trucks which are converted into specialized cars must apply the use life of a freight car which is not more than 25 years, while specialized cars and passenger cars up to 9 seats which are converted into freight cars must adopt the use life of a freight car which is not more than 25 years. Freight trucks which are converted into a passenger car before 1 January 2002 must adopt the use life of functionally converted a passenger car which is not more than 17 years.

I P/F R Speed 1 July MOT Operating a motor vehicle at a speed beyond the Implementation limits/mana 2012 prescribed speed limit is prohibited pursuant to Law No. ongoing for gement 23/2008/QH12 on road traffic. On expressways, the black box allowable speed is indicated on the road signs or painted road markings.123 Decree No. 91/2009/ND-CP dated October 21, 2009 of the Government on road transport business and business conditions124 requires passenger cars plying any 500-km-plus routes and freight vehicles to install a black box, a device that would record speed and driving time. Transport firms with 20% of their vehicles found speeding will be shut down.125 A digital map that would provide a vehicle’s location and its road’s speed limit via the black box is already being discussed.126

Since 2009 MOT, The speed limits are detailed in Circular No. 13/2009/TT- Implemented Sanctions since 2012 Ministry BGTVT dated 17 July 2009, 127128 the fines for violation of of Public which is stipulated in Decree No. 71/2012/ND-CP.129

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Safety

I P/F R Low- Not in emission discussion zones

I P/F I Eco driving - National While there seems to be no decrees promoting eco-driving, 0.2 MtCO2 Intended While the initiative is not at the national Transpo Ford Vietnam, in cooperation with Vietnam’s National potential in policy level, the Vietnamese government Energy Efficiency and Climate Change Mitigation in the Land Transport Sector rt Safety Transport Safety Committee, Asia Injury 2020 has an involvement in the project. The Committ Prevention Foundation, and the VOV Traffic Channel private sector typically administers such ee, Ford launched a program to raise awareness on fuel-efficient programs. Isuzu Eco Drive Seminar also Vietnam driving methods.130 Ford’s Driving Skills for Life (DSFL) holds seminars specifically aimed at truck programme131 started in 2008 and has been training drivers drivers132 globally.

I P/F I Traffic Hanoi has a Traffic Signal Control Centre (TSCC) but it Not in information appears that only a small fraction of the cameras installed discussion are functioning and the software is outdated. Additionally, the control centre has two separate control systems which are not integrated.133

I P/F R Traffic The city of Danang has an agreement with IBM technology - Planned impact to establish a traffic control centre to control the traffic control/ signal system.134135136 traffic flow improvemen t

I P/F E EV/hybrid/ 15 May MOIT Energy-efficient products, fuel-efficient vehicles and E2W: 5.9 Implemented While the use of electric vehicles (bikes hydrogen tax 2011 vehicles running on LPG, natural gas, electricity, mixed fuel MtCO2eq/a; and motorbikes) increased in Vietnam due incentive or biofuel are which are domestically unavailable are medium- to increased gas prices, CNG vehicles and entitled to import duty exemption and reduction under the term: hybrid vehicles are not widely used as tax law pursuant to Decree No. 21/2011/ND-CP of 29 2.3 CNG is not commercially available. “The March 2011.137 MtCO2eq/a price of hybrid vehicles is still high

127 compared with the price of other low- emission vehicles.”138

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I P/F E Low carbon Since 2010 E5 biofuel was launched in Hanoi market with the price of - Implemented The sale of the biofuel was rather slow, fuel VND 500/litre, lower that the RON92 petrol and this was partially attributed to ( 1st/2nd “consumers’ lack of information about gen Biofuel, the advantages of the biofuel.”139 CNG, LPG) incentives 15 May MOIT Energy-efficient products, fuel-efficient vehicles and Implemented

2011 vehicles running on LPG, natural gas, electricity, mixed fuel Energy Efficiency and Climate Change Mitigation in the Land Transport Sector or biofuel are which are domestically unavailable are entitled to import duty exemption and reduction under the tax law pursuant to Decree No. 21/2011/ND-CP of 29 March 2011.140

2007 – MOIT The creation of open market favourable for biofuel Implemented 2025 development and the adoption of preferential policies on credit, tax and land use rights for enterprises which invest in the development of biofuel production is stipulated in Decision No. 177/2007/QD-TTg of November 20, 2007, which likewise makes mention of Decree No. 24/2007/ND-CP of February 14, 2007 entitling biofuel production enterprises to income tax exemption or reduction for biofuel products, and to the highest land rent and land use incentives for 20 years. Raw materials and equipment used for its research and development will be exempted from import tax, while those used for its production are entitled to the lowest import tax rate.141

Since 2011 National Law No.50/2010/QH12 also provides a list of measures Implemented While this law has taken effect, there Assembl to promote the economical and efficient use of energy, remain no incentives as of 2010 to y, MOIT stipulating that fuel-saving vehicles and those using LPG. businesses to encourage the building of Natural gas, electricity and mixed fuels and biofuels which large LPG warehouses to help stabilise are domestically unavailable and on the list provided by the gas prices.142 Government are entitled to import duty exemption or reduction under the tax law.

2013 Departm In 2013, in order to push for the biofuel conversion plan, Intended / Among the key challenges to the success ent of the Government assigned the Department of Domestic Planning to the biofuel conversion plan is the need Domesti Market to amend Draft Decree 84 on oil and gas for enterprises to have a large working

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c Market management and business in order to create favourable capital to purchase and invest in storages conditions for E5 biofuel business enterprises. It has also because cassava, a raw material for biofuel been suggested that E5 biofuel be exempted from production, is seasonal.144145 environmental tax because it is an environmentally friendly product.143

A F R Logistic While Vietnam has a wide range of logistics providers, - Intended planning many do not offer integrated logistics service.146 Vietnam, Energy Efficiency and Climate Change Mitigation in the Land Transport Sector however, is improving logistics zones and port facilities, as well as their locations, all of which are components of logistic planning.

A F R/I Pipelines The ASEAN Plan of Action for Energy Cooperation 2010- - Implementation nv 2015 includes the implementation of the Trans-ASEAN ongoing Gas Pipeline (TAGP) designed to interconnect gas pipeline infrastructure of ASEAN member-states. International consortium and construction have been founded and have begun.147

A F R Empty Directorate for Roads of Vietnam (DRVN) is discussing - Intended hauling with donors DRVN, together with freight companies in reduction Vietnam, developed the “stock exchange” programme. For more comprehensive solution, DRVN is planning to develop the freight database by installing black boxes in trucks for tracking and collecting the travelling data in freight sector.148

A F R Improve Decision No. 2190/QD-TTg of December 24, - Implementation One example of logistics zone being built logistics 2009approving the master plan on development of ongoing is in Hai Phong City. It includes 640- centres and Vietnam’s seaport system through 2020, with orientations hectare Hai Phong international gateway their location toward 2030149 outlines the functions and development port (Lach Huyen port), 251-hectare Dinh scope of six groups of seaports in Northern, Central and Vu port, 144-hectare Nam Dinh Vu port, Southern Vietnam and the group of Mekong River delta and 11-hectare Cat Hai port (fishing port). seaports (including also Phu Quoc and south western It is expected to be completed in 2015.150 islands). The contents of the master plan covers national

129 general ports (including an international transhipment port, international gateway ports, and key regional ports), local ports to operate mainly within localities (provinces, cities),

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130 Category

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German Technical Cooperation | | Cooperation Technical German

Impleme respons Policy / Mitigation ntation ible Description Status *** Assessment / remarks**** measure potential period organis olicy P

Freight ation (s) ASI (G)* Passenger/ Passenger/ instrument**

and specialized ports to directly serve certain particular commodities such as cement, crude oil, coal ore. Through the entire seaport system to be developed, the throughput of goods is projected to reach the following figures: between 500 and 600 million tons/year by 2015; between 900 and 1,100 million tons/year by 2020, and; between

1,600 and 2,100 million tons/year by 2030. Energy Efficiency and Climate Change Mitigation in the Land Transport Sector

S F E Rail - Not in incentives discussion

S F E NMT freight - Not in incentives discussion

S F R Lorry 2010 Director Circular No. 07/2010/TT-BGTVT dated 11 February - Implementation MOT has set up 10 mobile weighing restrictions ate for 2010151 and Circular No. 03/2011/TT-BGTVT152 ongoing stations along national highways to Roads of stipulates the load and clearance limits applicable for roads; inspect overloaded trucks. About 26,255 Vietnam circulation of overloaded, oversized and caterpillar vehicles trucks were found to be overloaded from on roads; delivery of over length and overweight goods; January to November 2013. This figure and most importantly, loading limits on road traffic. does not include trucks passing through other roads.153

2012 Decision No.: 1502/QD-TTg dated 11 October 2012 Implementation approves the master plan of vehicle load checking station ongoing on the road till 2020, with a vision to the year 2030.154

S F I “Branding” - Not in campaigns discussion

S F R Master The national railway transport master plan specifies that the road to rail Planned A similar plan initially stirred controversy planning for key point of the plan is to focus on developing the external freight: and was rejected by the National rail and railway network linked with seaports and border countries. 2.6 Assembly in 2010 due to the high cost water The goal of the plan is for railway transport to account for MtCO2eq/a (USD56 billion). However, a revised study at least 13% of passenger transport and 14% of freight ; medium- was re-submitted in 2013.159160161 transport by 2020, and that the standard gauge of 1,435 term: 0.26 mm be built across the network and the current diesel tCO2eq/a. engines be transformed into electric engines. 155 There have 157

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Main -

German Technical Cooperation | | Cooperation Technical German

Impleme respons Policy / Mitigation ntation ible Description Status *** Assessment / remarks**** measure potential period organis olicy P

Freight ation (s) ASI (G)* Passenger/ Passenger/ instrument**

been plans to upgrade the current railway connecting Ho Road to Chi Minh City and Hanoi from single-track railway gauge waterway to a double-track board gauge. They will mainly serve as 2.2 cargo trains when the double-track railway is completed.156 MtCO2eq/y r; medium-

MOT The master plan was submitted to the Prime Minister in term 0.22 Partially This decision summarises the contents of July 2009162 and was approved according to Decision No. MtCO2; implemented the master plan, and major solutions and 2190/QD-TTg of December 24, 2009 approving the Road to policies, which mentions the application Energy Efficiency and Climate Change Mitigation in the Land Transport Sector master plan on development of Vietnam’s seaport system coastal 0.8 of PPP to develop new large ports and through 2020, with orientations toward 2030. 163 MtCO2eq; wharf areas, integrating the master plan medium- with the development of transport term: 0.08 networks, and building goods distribution MtCO2eq and logistics service centres in key per year.158 regional ports and international gateway ports in order to increase the operational capacity.

S F Inv Multimodal The “transport development strategy up to 2020, with a - Planned Apart from Vietnam, other signatories to facilities/dry vision toward 2030” was adjusted in Decision No. the agreement are Cambodia, China, ports 35/2009/QD-TTg dated 3 March 2009 recognising in No. Indonesia, Iran, Laos, Mongolia, 4 of Development Viewpoints that transportation should Myanmar, Nepal, the Republic of Korea, be developed toward a modern and high-quality system Russia, Tajikistan, Thailand, and the with reasonable cost, safety, reducing environmental United States. pollution and energy saving by application of advanced transport technology, especially multi-modal transportation and logistics.164 In November 2013, Vietnam, along with 13 other countries, signed an inter-governmental agreement on dry ports, pledging to create an integrated and sustainable inter-modal transport and logistics system.165

I F E CO2 based Taxation for trucks is not based on CO2 emissions. - Not in vehicle discussion taxation/regi stration fees

131 I F R Tyre None for freight. Tyre standards for motorcycles are set - Not in standards out in TCVN 5721-1993, TCVN 6771-2001, TCVN 7057- discussion

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Impleme respons Policy / Mitigation ntation ible Description Status *** Assessment / remarks**** measure potential period organis olicy P

Freight ation (s) ASI (G)* Passenger/ Passenger/ instrument**

1-2002. 166

I F R Aerodynami - Not in cs standards discussion

I F I Information - Not in

on efficiency discussion Energy Efficiency and Climate Change Mitigation in the Land Transport Sector to companies

I F I Driving - Not in information discussion

*ASI (G): Avoid, Shift, Improve, General **Types of policy instruments: Economic (E), Regulatory and planning (R), Information & Communication (I), Investments in infrastructure (Inv) ***Status: not in discussion, intended, planned, partially implemented, implementation ongoing, implemented (see Section 3.3 for explanation) ****Assessment/Remarks are related to scope, impact, key successes, progress, etc.

Sources:

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Vietnam News. (2012, December 9). Ministry plans to promote intelligent transport systems. Retrieved December 2013, from Vietnam News via Vietnam Net Bridge: -

http://english.vietnamnet.vn/fms/society/54116/ministry-plans-to-promote-intelligent-transport-systems.html | Cooperation Technical German 45 ThanhNien News. (2010, April 26). Intelligent transport system to ease traffic flow in Vietnam hub. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/2010/pages/20100426125510.aspx 46 Nhan Dan. (2013, October 12). Ha Nam province launches first Intelligent Transportation System in Vietnam. Retrieved December 2013, from Nhan Dan: http://nhandan.org.vn/en/society/item/2072602-ha-nam- province-launches-first-intelligent-transportation-system-in-vietnam.html 47 Road Traffic Technology. (2014, March 20). Japanese partnership to supply intelligent transport systems to Vietnam expressway. Retrieved May 2014, from http://www.roadtraffic-technology.com/news/newstoshiba- hitachi-itochu-to-supply-intelligent-transport-systems-to-vietnam-expressway-4200480 48 Decision No. 04/2008/QD-BXD promulgating the Vietnam Building Code on Regional and Urban Planning and Rural Residential Planning. Retrieved December 2013, from Food and Agriculture Organisation: http://faolex.fao.org/docs/pdf/vie86763.pdf 49 Lyon Urban Planning Agency &Ho Chi Minh City Urban Development Management Support Centre (PADDI). (2012) How can Urban Planning in Vietnam be more effective? The case of Ho Chi Minh City. Retrieved December 2013, from PADDI: http://www.paddi.vn/IMG/pdf/Eng_Urban_Planning_in_Vietnam_final.pdf 50 Vietnam News. (2014, February 9). Five cities to pilot public bicycle rental services. Retrieved March 2014, From Vietnam Net Bridge: http://english.vietnamnet.vn/fms/society/95155/five-cities-to-pilot-public-

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52 Bernama. (2012, September 10). Vietnam city launches car-free day campaign. Retrieved December 2013, from New Straits Times: http://www.nst.com.my/latest/vietnam-city-launches-car-free-day-campaign- Energy Efficiency and Climate Change Mitigation in the Land Transport Sector 1.141737 53 Van, L.T. (2011, November 4). Pedestrianisation needs thorough planning. Retrieved December 2013, from Vietnam News: http://vietnamnews.vn/opinion/your-say/217285/pedestrianisation-needs-thorough- planning.html 54 ITS International. (2013, August 16). Vietnam uses big data to transform city systems. Retrieved December 2013, from ITS International: http://www.itsinternational.com/categories/utc/news/vietnam-uses-big- data-to-transform-city-systems/ 55 Enbysk, L. (2013, August 21). Danang’s bold smart city next steps. Retrieved December 2013, from Smart Cities Council: http://smartcitiescouncil.com/article/da-nangs-bold-smart-city-next-steps 56 Vietnam News. (2013, August 16). Danang to tap new technology. Retrieved December 2013, from Vietnam News: http://vietnamnews.vn/society/243548/da-nang-to-tap-new-technology.html “In 2012, Danang was identified as one of the 33 cities world-wide to receive a US$400,000 grant in kind from IBM for the smart city project.” 57 The old version: Decision No. 06/2002/QD-TTg of January 7, 2002 approving the master plan on the development of Vietnam’s railway communications and transport sector till 2020 Retrieved December 2013, from ##: http://laws.dongnai.gov.vn/2001_to_2010/2002/200201/200201070001_en/lawdocument_view I cannot locate the revised version. 58 SaiGonTiepThi. (2009, June 5). National railway transport master plan approved. Retrieved December 2013, from SaiGonTiepThi via Invest: http://investinvietnam.vn/lng/2/detail/1165/National-railway- transport-master-plan-approved.aspx 59 Decision No. 06/2002/QD-TTg of January 7, 2002 approving the master plan on the development of Vietnam’s railway communications and transport sector till 2020. Retrieved December 2013, from Dong Nai Portal: http://laws.dongnai.gov.vn/2001_to_2010/2002/200201/200201070001_en/lawdocument_view 60 SaiGonTiepThi. (2009, June 5). National railway transport master plan approved. Retrieved December 2013, from SaiGonTiepThi via Invest: http://investinvietnam.vn/lng/2/detail/1165/National-railway- transport-master-plan-approved.aspx 61 Vision & Associates. (2012, March). Legal news. Retrieved December 2013, from Vision & Associates: http://vision-associates.com/data/document/client_resources/Legal%20News%20- %20March%202012.pdf 62 Phu, N.T. (2007). Value capturing: a realistic funding source for urban transportation in HCMC? Retrieved December 2013, from CODATU: (http://www.codatu.org/wp-content/uploads/Value-capturing-a-realistic- funding-source-for-urban-transportation-in-Ho-Chi-Minh-city-Thien-Phu-NGUYEN.pdf 63 The Voice of Vietnam. (2010, January 9). HCM City's development master plan gets go-ahead. Retrieved December 2013, from The Voice of Vietnam: http://english.vov.vn/Politics/HCM-Citys-development- master-plan-gets-goahead/111590.vov 64 Vietnam Real Estate. (2010, March 3). Hanoi Master Plan by 2030 and Vision to 2050. Retrieved December 2013, from Vietnam Real Estate: http://vnre.blogspot.com/2010/03/hanoi-master-plan-by-2030- and-vision-to.html 65 Vietnam Business Registration Inc. (n.d.). Hanoi to have eight urban railway routes by 2030. Retrieved February 2014, from Vietnam Business Registration Inc.: http://www.vnbusinessreg.com/hanoi-to-have- eight-urban-railway-routes-by-2030/ 66 Labbé, Danielle (2010, January). Facing the urban transition in Hanoi: recent urban planning issues and initiatives. Retrieved December 2013, from VillesRégions Monde: http://www.vrm.ca/documents/Hanoi_Urbanization.pdf 67 133 Refer to Annex. 68 World Bank. (2013). Hanoi Urban Transport Development Project. Retrieved December 2013, from World Bank: http://www.worldbank.org/projects/P083581/hanoi-urban-transport-development-

project?lang=en&tab=overview, http://documents.worldbank.org/curated/en/2013/11/18521659/vietnam-hanoi-urban-transport-development-project

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134 69 Quan, A. (2013, September 29). City to have first BRT line in 2018. Retrieved December 2013, from Vietnam Breaking News: http://www.vietnambreakingnews.com/2013/09/city-to-have-first-brt-line-in-

2018/#.UqFti_RgfbY -

70 SaiGonGiaiPhong. (2013, September 28). HCMC to have first Bus Rapid Transit by 2018. Retrieved December 2013, from SaiGonGiaiPhong via Vietnam Net Bridge: | Cooperation Technical German http://english.vietnamnet.vn/fms/society/85377/hcmc-to-have-first-bus-rapid-transit-by-2018.html 71 Danang Today. (2013, January 22). BRT system ready to start. Retrieved December 2013, from Danang Today: http://www.baodanang.vn/english/business/201301/BRT-system-ready-to-start-2217227/ 72 Vietnam News. (2013, September 19). Danang eyes urban transport development. Retrieved December 2013, from Vietnam News: http://vietnamnews.vn/society/245064/da-nang-eyes-urban-transport- development.html 73 RMIT Vietnam News. (2013, October 10). Pitching for the future. Retrieved December 2013, from RMIT Vietnam News: http://www.rmit.edu.vn/news/pitching-future 74 Decision No. 04/2008/QD-BXD promulgating the Vietnam Building Code on Regional and Urban Planning and Rural Residential Planning. Retrieved December 2013, from Food and Agriculture Organization: http://faolex.fao.org/docs/pdf/vie86763.pdf 75 ThanhNien News. (2013, August 8). Vietnam capital wants the cyclo to disappear. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/index/pages/20130808-hanoi-wants-to- disappear-the-cyclo.aspx 76 Hai, T.H., Hiep, D. V. (2013). Transportation demand management: A solution to reduce congestion and towards a sustainable transportation in Hanoi. Retrieved December 2013, from the Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 9, 2013: http://easts.info/on-line/proceedings/vol9/PDF/P93.pdf 77 Asian Development Bank. (n.d.).TA No. 7894: Project Data Sheet: 40080-023: Strengthening Sustainable Urban Transport for Ha Noi Metro Line 3 Project

Retrieved December 2013, from Asian Development Bank: http://www.adb.org/projects/40080-023/details; Source of funding: ADB Clean Technology Fund. Approved on 18 Oct 2011; Valkovic, R. (n.d.). Application for CTF Project Preparation Grant. Retrieved November 3, 2013, from Climate Investment Funds: Energy Efficiency and Climate Change Mitigation in the Land Transport Sector http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/Approval_by_mail_Project_Preparation_Grant_for_the_Vietnam_Sustainable_Urban_Transport_for_Ho_Chi_Minh_City _MRT_Line_2_Project_ppgpdf.pdf I 78 Cooperation Center for Urban Development. (n.d.). EcotransProject:Long Bien bus interchange (2006-2008).Retrieved December 2013, from Cooperation Center for Urban Development: http://www.imv- hanoi.com/en-US/Home/ecotransproject-176/1825/Long-Bien-bus-interchange-20062008.aspx 79 Decision No. 04/2008/QD-BXD promulgating the Vietnam Building Code on Regional and Urban Planning and Rural Residential Planning. Retrieved December 2013, from Food and Agriculture Organization: http://faolex.fao.org/docs/pdf/vie86763.pdf 80 Leather, J., Fabian, H., Gota, S., & Mejia, A. (2011, February).ADB Sustainable Development Working Paper Series No. 17: Walkability and pedestrian facilities in Asian Cities: State and issues. Retrieved December 2013, from Clean Air Asia: http://cleanairinitiative.org/portal/sites/default/files/ADB-WP17-Walkability-Pedestrian-Facilities-Asian-Cities.pdf 81 SaiGonTiepThi. (2009, June 5). National railway transport master plan approved. Retrieved December 2013, from SaiGonTiepThi via Invest: http://investinvietnam.vn/lng/2/detail/1165/National-railway- transport-master-plan-approved.aspx 82 ThanhNien News. (2013, August 14). Vietnam railways set for fast track upgrade. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/index/pages/20130809-vietnam-railways- set-for-fast-track-upgrade.aspx 83 AFD. (2014, January).Yen Vien -Lao Cai Railway Line Upgrading Project. Retrieved December 2013, from Agence Française de Développement (AFD): http://www.afd.fr/lang/en/home/pays/asie/geo- asie/afd-vietnam/cac-du-an-cua-afd-tai-viet-nam/transports/yen-vien-lao-cai-railway-line-upgrading-project 84 Vietnam Plus. (2013, December 27). Construction of North – South express railway re-proposed. Retrieved December 2013, from Talk Vietnam: http://talkvietnam.com/2013/12/construction-of-north-south- express-railway-re-proposed/#.UyqtUaiSxSA 85 Timberlake, Ian. (2010, June 12). Critics urge brakes on Vietnam's high-speed rail. Retrieved December 2013, from AFP via Google: http://www.google.com/hostednews/afp/article/ALeqM5jZt1P7ZKoy4cwjdo9y9vSc7-NloA 86 ThanhNien News. (2013, November 5). Vietnam's derailed express railway plan back on track, kind of. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/index/pages/20131101- derailed-express-railway-plan-back-on-track-kind-of.aspx 87 ThanhNien News. (2013, August 14). Vietnam railways set for fast track upgrade. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/index/pages/20130809-vietnam-railways- set-for-fast-track-upgrade.aspx 88 Railway Gazette. (2008, February 28). Ho Chi Minh City breaks ground. Retrieved December 2013, from Railway Gazette: http://www.railwaygazette.com/news/urban/single-view/view/ho-chi-minh-city- breaks-ground-1.html 89 Railway Gazette. (2013, June 12). Ho Chi Minh City Line 1 E&M contract signed. Retrieved December 2013, from Railway Gazette: http://www.railwaygazette.com/news/urban/single-view/view/ho-chi-minh- city-line-1-em-contract-signed.html 90 Railway Gazette. (2013, October 29). Ho Chi Minh City metro Line 5 funding secured. Retrieved December 2013, from Railway Gazette: http://www.railwaygazette.com/news/urban/single-view/view/ho-chi- minh-city-metro-line-5-funding-secured.html 91 Vong, L. H. (2012, August 29). Ho Chi Minh City begins work on Vietnam first metro line. Retrieved December 2013, from Asia News Network: http://www.asianewsnet.net/news-35696.html

ASEAN 92Railway Gazette. (2013, October 29). Ho Chi Minh City metro Line 5 funding secured. Retrieved December 2013, from Railway Gazette: http://www.railwaygazette.com/news/urban/single-view/view/ho-chi-

minh-city-metro-line-5-funding-secured.html (The Asian Development Bank will provide US$500m, the European Investment Bank €150m and the Spanish government €200m. The remainder will come from -

the Vietnamese government’s own resources.) | Cooperation Technical German 93 ThanhNien News. (2010, June 12). Vietnam metro systems get set, but will the public go? Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/index/pages/20130606-metro- systems-get-set-but-will-the-public-go.aspx 94 Hai, T.H., Hiep, D. V. (2013). Transportation demand management: A solution to reduce congestion and towards a sustainable transportation in Hanoi. Retrieved December 2013, from the Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 9, 2013: http://easts.info/on-line/proceedings/vol9/PDF/P93.pdf 95 Nguyen, T. N. (2007, May 4). Excise Tax on Automobile in Vietnam. Retrieved December 2013, from International Tax and Investment Center: http://www.iticnet.org/programs/asia-pacific/ATF4 96 Phuong, L. (2012, October 10). Taxes, fees hinder auto industry development. Retrieved December 2013, from Vietnam Economic News via Talk Vietnam: http://talkvietnam.com/2012/10/taxes-fees-hinder- auto-industry-development/ 97 Vietnam Express. (2012, January 4). Transport Ministry’s proposal stirs controversy. Retrieved December 2013, from Vietnam Express via Vietnam Net Bridge: http://english.vietnamnet.vn/fms/society/16976/transport-ministry-s-proposal-stirs-controversy.html 98 Quyen, B. (2013, January 3). Automobile owners begin paying road maintenance fee. Retrieved December 2013, from SaiGonGiaiPhong: http://www.saigon-gpdaily.com.vn/national/2013/1/103853/ 99 Piaggio&C.s.p.a. (n.d.) The regulatory framework. Retrieved December 2013, from Piaggio& C. SpA: http://piaggiosemestrale2013.message-asp.com/en/background/regulatory-framework 100

Lan, M. (2013, March 26). $50 million of road maintenance fees collected. Retrieved December 2013, from Vietnam Net Bridge: http://english.vietnamnet.vn/fms/society/71013/-50-million-of-road-maintenance- fees-collected.html

101 Vietnam Net Bridge. (2013, July 16). Hanoi begins collecting road maintenance fee from motorcycles. Retrieved December 2013, from Vietnam Net Bridge via Vietnam Breaking News: Energy Efficiency and Climate Change Mitigation in the Land Transport Sector http://www.vietnambreakingnews.com/2013/07/hanoi-begins-collecting-road-maintenance-fee-from-motorcycles/#.Up9VwcRgfbY 102 ThanhNien News. (2012, December 14). New road fee upsets transport companies. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/2010/pages/20121213-new-road-fee- upsets-vietnam-transport-companies.aspx 103 Decree No.12/2006/ND-CP making detailed provisions for implementation of the commercial law with respect to international purchases and sales of goods; and agency for sale and purchase, processing and transit of goods involving foreign parties. Retrieved December 2013, from Ministry of the Environment, Japan: http://www.env.go.jp/en/recycle/asian_net/Country_Information/Imp_ctrl_on_2ndhand/Vietnam/Vet-Decree12_NDCP_En.pdf 104 No. 24/2000/CT-TTg of November 23, 2000 on the use of non-lead petrol in Vietnam. Retrieved December 2013, from Centre Database on Legal Normative Documents: http://vbpl.vn/TW/Pages/vbpqen-print.aspx?ItemID=132 105 Associated Press. (2001, January 31). Vietnam to ban imports of vehicles that use leaded fuel. Retrieved December 2013, from Gas & Oil Connections: http://www.gasandoil.com/news/south_east_asia/6c1aa32563c9da68fa1c7fe17bf3b85f?b_start=16580 106 Decree No. 21/2011/ND-CP of 29 March 2011, detailing the Law on Economical and Efficient Use of Energy and measures for its implementation. Retrieved December 2013, from Food and Agriculture Organization: http://faolex.fao.org/docs/pdf/vie106932.pdf 107 Refer to Annex 6. 108 Punte, S., Fabian, B., Gota, S., & Mejia, A. (2010). Challenges and opportunities for an environmentally sustainable road freight sector in Asia. (Prepared for the 5th Regional EST Forum in Asia). Retrieved March 2014, from UNCRD: http://www.uncrd.or.jp/env/5th-regional-est-forum/doc/03_bg_Asia.pdf 109 Decision No. 49/2011/QD-TTg of September 1, 2011, providing the roadmap for application of exhaust emission standards to manufactured, assembled and imported brand-new cars and motorbikes. Retrieved December 2013, from General Department of Vietnam Customs: http://www.customs.gov.vn/Lists/EnglishDocuments/ViewDetails.aspx?language=en-US&ID=1163 110 Circular No.: 20/2009/TT-BKHCN of September 30, 2009 on promulgation and implementation of “National Technical Regulations on Gasoline, Diesel Fuel Oils and Biofuels.” Retrieved December 2013, from LuatVietnam: https://www.google.com.ph/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCkQFjAA&url=http%3A%2F%2Fluatvn.net%2FFiledownload%2F85888%2F94602%2Fen_20_2009_tt_bkhcn.doc& ei=JUipUqDlJdXAoASu-YGYCA&usg=AFQjCNEpJSGmkfTt-1af43kEQYvWq-j7SQ&cad=rja 111Directive No. 24/2000/CT-TTg of November 23, 2000 on the use of non-lead petrol in Vietnam. Retrieved December 2013, from Centre Database on Legal Normative Documents: http://vbpl.vn/TW/Pages/vbpqen-print.aspx?ItemID=132 112 World Bank. (2001, July 5). Vietnam switches to unleaded gasoline. Retrieved December 2013, from World Bank: http://go.worldbank.org/HD985VWEB0 113 Law No: 52/2005/QH11 on Environmental Protection. Retrieved December 2013, from Ministry of Justice: http://www.moj.gov.vn/vbpq/en/Lists/Vn%20bn%20php%20lut/View_Detail.aspx?ItemID=5961 114 United Nations Environment Programme. (n.d.).Vietnam sets vehicle emission standards and fuel quality roadmap. Retrieved January 2014, from United Nations Environment Programme: http://www.unep.org/transport/pcfv/news/vietnam_fuelquality.asp 135 115 MONRE & MOT. (2011, December).EST Progress. (Presented in 6th EST Regional EST Forum, New Delhi, India on December 2011). Retrieved December 2013, from UNCRD: http://www.uncrd.or.jp/env/6th-regional-est-forum/doc/country_r/group3/EST2-3_07_Viet%20Nam.pdf

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136 116 Oanh, P. (2013, October 30). Vietnam faces air pollution threat. Retrieved January 2013, from Ministry of Natural Resources and Environment: http://www.monre.gov.vn/v35/default.aspx?tabid=675&CateID=58&ID=130119&Code=RHBW130119 -

117 Vietnam Legal Update (2006, April). Retrieved December 2013, from Vietnam Laws: http://www.vietnamlaws.com/vlu/apr_2006.pdf | Cooperation Technical German 118 Vietnam Legal Update (2009, July). Retrieved December 2013, from Phuoc&Parners: http://www.phuoc- partners.com/upload/files/news/legal%20update%20newsletter%20july%202009%20en%20(final).pdf 119 Joint Circular No. 25/2010/TTLT-BCT-BGTVT-BTC providing the import of brand-new under 16-seat passenger cars. Retrieved December 2013, from Dong Nai Customs: http://www.dncustoms.gov.vn/web_english/english/btc/25_2010_TTLT_BCT_BGTVT_BTC_14_06_2010.htm 120 Circular no.44/2012/TT-BGTVT dated Oct.23rd.2012 stipulating the inspection of the technical quality, safety and environment protection of imported motorbikes and imported engines for motorbike manufacture and assembly. Retrieved December 2013, from General Department of Vietnam Customs: http://www.customs.gov.vn/Lists/EnglishDocuments/ViewDetails.aspx?ID=1188&language=en-US 121 Circular No. 29/2012/TT-BGTVT dated July 31, 2012 of the Ministry of Transport on regulations on renovation of motorized means of road transportation. Retrieved December 2013, from KhaiPhong Corporate & Business: http://luatkhaiphong.com/Van-ban-Tieng-Anh/Circular-No.-29/2012/TT-BGTVT-dated-July-31-2012-6766.html 122 Decree No: 95/2009/ND-CP providing for the use life of cargo automobiles and passenger automobiles the government. Retrieved December 2013, from Ministry of Justice: http://vbqppl.moj.gov.vn/vbpq/en/Lists/Vn%20bn%20php%20lut/View_Detail.aspx?ItemID=10699 123 Law No. 23/2008/QH12 on road traffic. Retrieved December 2013, from Ministry of Justice: http://www.moj.gov.vn/vbpq/en/Lists/Vn%20bn%20php%20lut/View_Detail.aspx?ItemID=10506 124 Decree No. 91/2009/ND-CP dated October 21, 2009 of the Government on road transport business and business conditions. Retrieved December 2013, from Dragon Law Firm:

http://congtyluatdragon.com/en/decree/prsdi106/ildn1034.htm 125 Quan, A. (2013, July 8). Drivers bemoan penalty for black box errors Retrieved December 2013, from The Saigon Times Daily: http://english.thesaigontimes.vn/Home/society/nation/29983/ Energy Efficiency and Climate Change Mitigation in the Land Transport Sector 126 ThanhNien News. (2013, May 30). Black box rule could face enforcement snags. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/index/pages/20130530-black-box-rule-could- face-enforcement-snags.aspx 127 Circular No. 13/2009/TT-BGTVT of July 17, 2009, prescribing speeds of and distances between special-use motor vehicles and motorcycles running on roads. Retrieved December 2013, from Vietnam Legal Update - Official Gazette (English issue nos. 6-12 July 2009) via Google Groups: https://groups.google.com/forum/#!topic/ilvn/2ppntmOOsK8; Forum: What're the Vietnamese road vehicle speed limits? - Answers for Hanoi, Northern Vietnam and Vietnam. Retrieved December 2013, from THN Vietnam: http://tnhvietnam.xemzi.com/en/aska/answers/qid/7660 128 Passmore, J. (2012, December 1). Road Safety in Viet Nam (Presented in BJD World Network Conference, Ho Chi Minh City, on 1 December 2012). Retrieved December 2013, from The Bone and Joint Decade: http://bjdonline.org/wp-content/uploads/2013/03/Road-safety-in-Viet-Nam.pdf 129 Decree No. 71/2012/ND-CP Amending and supplementing a number of articles of Decree No. 34/2010/ND-CP April 2, 2010 of the Government prescribed administrative sanctions in the field of road traffic. Retrieved December 2013, from Viet Law Network: http://www.luatgiaothongduongbo.net/van-ban-lien-quan/nghi-dinh-so.nd5-dt.77.003.html 130 Hai Duong News. (2013, May 27). Ford Vietnam guides safe driving. Retrieved December 2013, from Vietnam Breaking News: http://www.vietnambreakingnews.com/2013/05/ford-vietnam-guides-safe- driving/#.UrAnptIW1SA 131 Hoang, A. (2013, May 27). ‘Driving Skills for Life’ 2013 launched. Retrieved December 2013, from Vietnam Investment Review: http://www.vir.com.vn/news/en/corporate/driving-skills-for-life-2013- launched.html 132 Isuzu Vietnam. (2013, August 14). Eco-Drive with Isuzu Vietnam. Retrieved December 2013, from Isuzu Vietnam: http://isuzu-vietnam.com/en/tin-tuc/lai-xe-tiet-kiem-nhien-lieu-cung-isuzu-viet-nam 133 Dao, Duc, Huong, Bao. (2011). Study on the current traffic signal control system in Hanoi. Retrieved December 2013, from the Proceedings of the Eastern Asia Society for Transportation Studies, Vol. 8, 2011, via Academia: http://www.academia.edu/4140865/Study_on_the_Current_Traffic_Signal_Control_System_in_Hanoi 134 ITS International. (2013, August 16). Vietnam uses big data to transform city systems. Retrieved December 2013, from ITS International: http://www.itsinternational.com/categories/utc/news/vietnam-uses-big- data-to-transform-city-systems/ 135 Vietnam News. (2013, August 16). Danang to tap new technology. Retrieved December 2013, from Vietnam News: http://vietnamnews.vn/society/243548/da-nang-to-tap-new-technology.html 136 Enbysk, L. (2013, August 21). Danang’s bold smart city next steps. Retrieved December 2013, from Smart Cities Council: http://smartcitiescouncil.com/article/da-nangs-bold-smart-city-next-steps 137 Decree No. 21/2011/ND-CP of 29 March 2011, detailing the Law on Economical and Efficient Use of Energy and measures for its implementation. Retrieved December 2013, from Food and Agriculture Organization: http://faolex.fao.org/docs/pdf/vie106932.pdf 138 World Bank. (2009). Potential climate change mitigation opportunities in the transport sector in Vietnam: Background paper. Retrieved December 2013, from Washington, DC: World Bank: http://documents.worldbank.org/curated/en/2009/05/13160223/potential-climate-change-mitigation-opportunities-transport-sector-vietnam-background-paper 139 Uyen, T. (2012, October 12). The biofuel plan dies prematurely. Retrieved December 2013, from Vietnam Net Bridge: http://english.vietnamnet.vn/fms/science-it/50070/the-biofuel-plan-dies-prematurely.html 140 Decree No. 21/2011/ND-CP of 29 March 2011, detailing the Law on Economical and Efficient Use of Energy and measures for its implementation. Retrieved December 2013, from Food and Agriculture Organization: http://faolex.fao.org/docs/pdf/vie106932.pdf 141 Decision No. 177/2007/QD-TTg of November 20, 2007, approving the scheme on development of biofuel up to 2015, with a vision to 2025. Retrieved December 2013, from Asia Biomass Office: http://www.asiabiomass.jp/biofuelDB/vietnam/pdf/Decision%20No.%20177.pdf 142 Vietnam News. (2010, November 30). Lack of storage blamed for gas hike. Retrieved December 2013, from Vietnam News: http://vietnamnews.vn/economy/206224/lack-of-storage-blamed-for-gas-hike.html

ASEAN 143 Ngoc, B. &Huong, N. (2013, May 23). Consistent route to use biofuel. Retrieved December 2013, from Vietnam Breaking News: http://www.vietnambreakingnews.com/2013/05/consistent-route-to-use-

biofuel/#.UrCbBfQW3KA -

144 Ibid. | Cooperation Technical German 145 World Bank. (2009). Potential climate change mitigation opportunities in the transport sector in Vietnam: Background paper. Retrieved December 2013, from Washington, DC: World Bank: http://documents.worldbank.org/curated/en/2009/05/13160223/potential-climate-change-mitigation-opportunities-transport-sector-vietnam-background-paper 146 World Bank. (2006). Transport strategy: Transition, reform, and sustainable management. Retrieved December 2013, from World Bank: http://siteresources.worldbank.org/INTEAPINFRASTRUCT/Resources/Transport.pdf 147 Clancy, Stephanie. (2010, June).Pipeline projects fuel expanding economies in South East Asia. Retrieved December 2013, from Pipelines International: http://pipelinesinternational.com/news/pipeline_projects_fuel_expanding_economies_in_south_east_asia/041510 / 148 GIZ. (2013 September).Meeting Report: TCC project scoping mission to Hanoi. Unpublished manuscript. 149 Legal Normative Documents: Decision No. 2190/QD-TTg of December 24, 2009, approving the master plan on development of Vietnam’s seaport system through 2020, with orientations toward 2030. (2009).Retrieved December 2013, from Ministry of Justice: http://www.moj.gov.vn/vbpq/en/Lists/Vn%20bn%20php%20lut/View_Detail.aspx?ItemID=10735 150 Vietnam Net Bridge. (n.d.). Business in brief. Retrieved January 2014, from Vietnam Net Bridge: http://english.vietnamnet.vn/fms/business/97932/business-in-brief-21-3.html 151 Circular Ref. 07/2010/TT-BGTVT. Retrieved December 2013, from Regional Road Management Unit No. 2 (RRMU2) of the Directorate for Roads of Vietnam (DRVN):

https://www.google.com.ph/url?sa=t&rct=j&q=&esrc=s&source=web&cd=10&ved=0CGMQFjAJ&url=http%3A%2F%2Fkqldb2.gov.vn%2FUpload%2Ftt07.doc&ei=D3qyUuvBGae6iAfz7oCwDw&usg =AFQjCNHeEEaelSzZ3KLgY-mEBtdmYOFGpA&bvm=bv.58187178,d.aGc&cad=rja 152 Circular No. 03/2011/TT-BGTVT dated February 22, 2011 of the Ministry of Transport on amending and supplementing the Transport Ministry's Circular No. 07/2010/TT-BGTVT of February 11, 2010, Energy Efficiency and Climate Change Mitigation in the Land Transport Sector providing. Retrieved December 2013, from Dragon Law Firm: http://www.lawfirm.vn/?a=doc&id=1770 153Vietnam News. (2013, December 13). Ministries unite to track down overloaded trucks. Retrieved January 2014, from Vietnam News: http://vietnamnews.vn/society/248895/ministries-unite-to-track-down- overloaded-trucks.html 154 Decision No. 1502/QD-TTg dated October 11, 2012 of the Prime Minister approval of master plan of vehicle load checking station on the road till 2020, with a vision to the year 2030. Retrieved December 2013, from Dragon Law Firm: http://lawfirm.vn/?a=doc&id=2664 155 SaiGonTiepThi. (2009, June 5). National railway transport master plan approved. Retrieved December 2013, from SaiGonTiepThi via Invest: http://investinvietnam.vn/lng/2/detail/1165/National-railway- transport-master-plan-approved.aspx 156 ThanhNien News. (2013, August 14). Vietnam railways set for fast track upgrade. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/index/pages/20130809-vietnam-railways- set-for-fast-track-upgrade.aspx 157 Refer to Annex 3. 158 Refer to Annex 3. 159 Timberlake, Ian. (2010, June 12). Critics urge brakes on Vietnam's high-speed rail. Retrieved December 2013, from AFP via Google: http://www.google.com/hostednews/afp/article/ALeqM5jZt1P7ZKoy4cwjdo9y9vSc7-NloA 160 ThanhNien News. (2013, November 5). Vietnam's derailed express railway plan back on track, kind of. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/index/pages/20131101-derailed-express-railway-plan-back-on-track-kind-of.aspx 161 ThanhNien News. (2013, August 14). Vietnam railways set for fast track upgrade. Retrieved December 2013, from ThanhNien News: http://www.thanhniennews.com/index/pages/20130809-vietnam-railways- set-for-fast-track-upgrade.aspx 162 Inchcape Shipping Services. (n.d.).Summary of master plan for Vietnam seaport system development till 2020, orientation to 2030.http://www.iss- shipping.com/Attachments/VIETNAM%20SEAPORT%20SYS%20DEV%20TIL%202020%20_2_.pdf 163 Legal Normative Documents: Decision No. 2190/QD-TTg of December 24, 2009, approving the master plan on development of Vietnam’s seaport system through 2020, with orientations toward 2030. (2009).Retrieved December 2013, from Ministry of Justice: http://www.moj.gov.vn/vbpq/en/Lists/Vn%20bn%20php%20lut/View_Detail.aspx?ItemID=10735 164 Decision No. 35/2009/QD-TTg approving adjustments to the transport development strategy up to 2020 with a vision toward 2030. (2009). Retrieved December 2013, from Dragon Law Firm: http://lawfirm.vn/?a=doc&id=1603 165 Vietnam Plus. (2013, 9 November). Fourteen countries sign dry ports agreement. Retrieved December 2013, from Vietnam Plus: http://en.vietnamplus.vn/Home/Fourteen-countries-sign-dry-ports- agreement/201311/41619.vnplus 166 Vietnam Register. (n.d.).Function of Vietnam Register: Motor Vehicles. Retrieved December 2013, from Vietnam Register: http://www.vr.org.vn/vre/gioithieuE.aspx?id_news=73&id=Motor%20Vehicles 137